Making Human Resource Decisions

• a clear organisational structure makes it easy for everyone to know who is responsible for what
• the layers of organisation structures are:

  • DIRECTORS
  • SENIOR MANAGER
  • SUPERVISOR
  • STAFF
• directors are responsible for the business and its activities, they are responsible for the business's performance and the way it is run
• senior managers organise the carrying out of the directors orders
• supervisors look after specific projects or small teams of staff
• staff are workers who aren't responsible for other staff and are given specific tasks by their superiors
• the chain of command is the chain that connects directors all the way to staff
• the span of control is the number of workers who report to one manager
• a hierarchical structure has more layers than a flat structure
• hierarchical structure:

  • long chain of command
  • more layers of management
  • communication can get distorted as more people are needed to pass on the message
  • managers have a narrow span of control, so they focus on those individuals more closely
• flat structures:

  • short chain of command
  • messages are passed on quickly
  • managers have a wide span of control meaning they have to manage a lot of employees
  • it can be difficult to manage a lot of these employees effectively
• centralised organisations:

  • all major decisions are made by one person or few people who are at the top
  • these senior managers have a lot of experience and have a whole overview of the business
  • could slow down decision making if its only done by a few people
  • communication would take long to reach employees
  • this means that the business would react slower to change
• decentralised organisations:

  • decision making is shared out to managers in individual branches
  • business can react to change quickly
  • helps them stay competitive
  • less need for a central office, reducing fixed costs
  • however decisions may not meet overall needs
• a big business can be easier to operate if it is split into different parts
• effective communication can improve staff motivation as they feel valued and know what's going on

  managers and senior staff would feel confident that their employees work would be of high quality
• insufficient communication:

  • people would be slow to recieve important messages
  • so tasks can be done incorrectly
  • which wastes time and money
• excessive communication:

  • can waste time for those who dont need to be communicated to
  • workers would start to ignore messages as there are so many and would start to miss out on important ones
  • can affect the productivity of employees as they would feel demotivated and overwhelmed with the amount of communication
• some people work full time for financial reasons
• some people can afford to work part time, so they can spend more time with their family
• part time employees can fill in for staff who are absent
• flexible working hours can be adapted to suit the employees needs
• zero hour contracts

  • employer doesnt have to offer work to the employee
  • employee doesnt have to accept work offered to them
  • business doesnt waste money paying these staff when they're not really needed
• a permanent contract has no end date unless:

  • they choose to leave
  • they get fired
  • they get redundant
• • a temporary contract is for a fixed period
  • at the end of the contract, the contract can be renewed or the person can leave
• a freelance contract is when a self employed person is recruited by a company to work on a specific project
• temporary and freelance contracts make it easier to:

  • employ staff who have certain skills for a set period of time
  • adjust the number of staff according to the business needs
• advances in technology has made process more efficient and accurate as repetitive tasks can be done by a machine
• technology has made it easier for employees to work remotely
• steps of recruitment:

  • job analysis
  • advertisement
  • selection
• job analysis is when the business thinks about every detail of the job in depth to find out what skills and abilities are needed
• job advertisement is done using a job description and a person specification
• job descriptions state the responsibilities and duties of the job and who the employee would report to
• person specifications list the qualifications and skills needed for the job
• internal recruitment

  • an employee is recruited from within the business itself
  • the job is advertised within the business
  • cheaper
  • job would be filled quicker
  • candidate and bosses would know eachother already
  • however, the employee would leave a vacancy that needs filling
  • there wont be any new ideas with new employees
• external recruitment:

  • recruiting from outside the business
  • advertisment would be seen by more people
  • business can find someone who really fits the job
  • advertisment would be expensive
• a CV is a summary of a persons skills and qualifications
• some job candidates are asked to fill an application form as it is more relevant to the job and quick to carry out
• online applications help the business compare other applications using computer software
• informal training:

  • done on the job
  • they are shown how do it and then they practice
  • given by other workers
  • cost effective as the employee is working and learning at the same time
• formal training:

  • set plan
  • away from the workplace
  • done by qualified experts
  • high quality
  • expensive