Business topic 4

• organisational structure

  are important for everyone knowing their responsibility

  most firms have hierarchical structure- means they are structured In layers

  4 basic layers of staff within hierarchy:

  directors- responsable for strategy

  managers- organise carrying out directors strategy

  supervisor- look after specific projects or small teams of operatives

  operatives- workers not responsible for other staff
• tall and flat structure

  tall:

  long chain of command, more layers of management

  each manager only has lower span of control

  flat organisational structure:

  short chain of command

  each manager has wide span of control
• centralised organisations

  all major decisions made by one person or a few senior managers at the top

  these people tend to have a lot of experience

  only a few people making the decision can slow down decision making
• decentralised organisation

  authority is shared out

  employees can use good knowledge of their sector to make decisions

  also don't need to communicate with managers about them about decisions, so decisions can be made quicker

  inconsistencies may develop between departments
• contract of employment

  a legal agreement between employee and employer

  contains the info that most employers must give employees within 2 months

  job title

  starting date

  hours of work

  pay and regular date of payment

  where employer will be working

  holidays employers are entitled to

  details of sickness Pay

  info about disciplinary procedures

  length of notice employers have to give if they want to leave
• employment: full time and part time

  full Time: 35-40 hours a week

  part time: 10-30 hours a week

  some prefer full time as they need money

  some prefer part time so they can spend time with family etc.

  full time staff is goof if there is enough work to do

  part time makes more sense of company is only busy at certain periods

  part time can fill in when people are sick
• jobs can be shared 


  some employees Job share: share the work and pay of a full time job

  good for people who only want to work part time

  good if people have different strengths

  responsibilities and communication has to be clear
• zero hour contracts

  employer doesn't have to offer them any work at all and employee doesn't have to accept any work

  cheap form of labour- doesn't waste money paying stuff when their not needed

  appeal to people who want extra cash, but want to be able to turn work down
• businesses have to be clear about job on offer

  steps involved in recruitment- job analysis, advertisement, and selection

  job analysis is where a firm thinks in depth about every detail of the Job

  advertisement usually includes job description

  business then has to go through candidates and select the best one
• internal and external recruitment

  internal:

  current employees into new roles

  cheaper,

  position can be filled more quickly

  already have knowledge on firm

  no new ideas

  External:

  outside business

  find there best person

  isn't cheap
• benefits of recruiting the right people

  high productivity

  high quality output

  good customer service
• induction training

  introducing people to the work place, fellow workers, and advising them of company rules and procedures

  new employees can feel confident when they start and less likely make mistakes
• on the job training

  most common type of training

  when employees learn to their job, and then practicing

  more suitable where practical skills are being taught. e.g. learning how to use a till at a shop

  it is cost-effective for employee as they are learning and getting paid st the same time

  bad working practices can be passed on
• off the job training

  happens when staff learn away from a work place e.g. at a local college

  appropriate when employee needs to know general info about a business

  more expensive then on the job training but is often higher quality training
• training benefits

  employees:

  up to date skills and knowledge will allow you to do your job better, increasing job satisfaction and motivation

  can get promoted

  
  

  employers:

  produce higher quality goods or services

  more efficient

  help staff stay up to date

  make staff feel motivated
• financial motivation through wages

  wages are commonly payed weekly or monthly

  time rates pays people by the hour , encouraging people to work longer hours.

  piece rate is used if output of each worker can be easily measured

  encourages people to work quicker
• financial motivation through salary

  salary is a fixed amount payed every month

  a salary of 24000 means 2000 a month

  firm and workers both know how much you are payed

  it doesn't encourage employees to work harder
• employers can give staff extra payments

  commission-this is paid to sales staff for every item they sell, it is given to them on top of a small basic salary

  profit sharing schemes- e.g. where a % of the company profit are divided
• style of management motivation

  workers feel more motivated if they are managed in a way that kets them have an input in the decisions
• fringe benefits

  it is any reward that is not part of a workers main income

  e.g. staff income