2.5

• The structure of an organisation determines how staff are organised and how they work with one another. The structure will determine how decisions are made and how employees are managed
• Hierarchical or tall structures

  Lots of layers of management - like a ladder

  More opportunities for promotion with organisations with a tall hierarchical structure

  Managers have smaller spans of control in hierarchical structures as they have fewer people to manage

  Chain of command is slower so messages have to pass through many layers of management

  Communication is slower
• Flat structures 


  Very few layers of management

  Managers have very wide spans of control increasing the workload

  Communication often fast as few layers of command

  Decisions can sometimes be quicker as less layers to go through
• Centralised decision making 


  The majority of decisions are made at the head office this helps to ensure consistency across all branches. makes business operations easier to control and ensures standardisation however decision making slow as branches have to go back to head office to check
• Decentralised decision making 


  Decisions are made by local managers of branches or divisions who know the local market better however head office has to give up some control so less consistency. Decisions can be made quicker and respond to local needs
• Importance of effective communication

  If employees are given excessive information they might suffer from information overload

  Wont know what messages or instructions are important messages may be missed and all of this leads to inefficiency

  Employee feels overwhelmed and unable to manage workload therefore demotivated

  Excessive information increasingly common as technology leads to emails messenger services etc
• Barriers to effective communication

  • Excessive or insufficient communication
  • Lack of knowledge by employees
  • Jargon
  • Inappropriate mediums of communication eg emails when face to face required
  • Language barriers - especially in MNC
  • Technical barriers
  • Emotional barriers
  • Distance
  • Noise
• Different ways of working

  Part-time - working less than the full working week. convenient for staff with other commitments such as school or family

  Full-time - employed to work a full week usually between 35-48 hours

  Flexible hours - some businesses allow employees to choose working patterns that suit them. Can be very motivating

  Freelance - when a self-employed person with expertise in a specialism is recruited for a specific project
• Different types of contracts

  Zero-hour contracts - hours of employees determined by needs of business, very flexible for business however may be unpopular with employees due to uncertainty of hours and pay

  Permanent contracts - no end and person stays at the firm unless, the leave or are fired for misconduct or job is made redundant

  Temporary contract - fixed time period and common in the tourist industry. Allows firms to recruit on short-term basis
• Key job roles in effective recruitment

  Directors responsible for business strategy (overall direction)

  Senior managers organise the implementation of the strategy they lead and manage key functions

  Supervisors/team leaders lead and manage small teams or specific projects

  Operational and support staff aren't responsible for other staff. Given specific task by managers, supervisors or team leaders
• Person specification 


  A document describing the ideal person to fill a vacancy in terms of their: skills, qualities, qualifications and experience
• Job description 


  A document describing the duties, roles and responsibilities of a position and the status within the business
• Application form 


  A document produced by the business and filled in by job applicants with the person's details. This document allows for easy comparisons between candidates and allows the business to ask for specific information from candidates
• CV


  Document created by job applicants outlining person details including name, personal statement, qualification, skills, experience, interest and references
• Internal recruitment 


  Involves recruiting employees from within the business into new roles. Much cheaper and quicker. Businesses will already know employees' strengths and weaknesses and employees will know the firm so less training. Can be motivational but means no new ideas coming into the business
• External recruitment 


  Involves recruiting from outside the business. Can be a slower and more expensive process and businesses won't know applicants. Means more applicants and new ideas coming into business
• Formal training 


  Structured, organised courses with specific objectives delivered by specialists which often result in official certificates and qualifications
• Informal training 


  May be delivered by colleagues, with no formal testing at the end and no official recognition of the training. this type of training may include observations of, conversations with, colleagues
• Self learning


  Independent study which is not supervised by teacher or tutor
• On-going training


  Through the employees time in their roles after initial induction. Will include updates and reminders
• Targets and setting performance reviews

  Training and developing employees can be expensive therefore it should always be relevant in order to maximise the benefit

  Identifying training needs during an annual performance review will ensure that the appropriate training is organised

  During an appraisal, targets will be set and training to be agreed giving the employee something to work towards, these targets will be reviewed the following year
• Motivation and retention 


  Investing in employees by training and developing them makes them feel valued; it shows that the business is interested in them and is willing to help them improve, makes staff feel like they are progressing and means they are more likely to stay at the business
• New technology 


  Staff training ensures that all employees are up to date with new technology, ensuring they can sue any new software efficiently and effectively, improving productivity
• Importance of motivation in the workplace

  Having highly motivated staff may attract new employees to the firm making recruiting new staff easier

  Motivated staff are more likely to stay at firm; increasing staff retention

  Motivated staff work harder - increasing productivity as the workers want the firm to do well so they do there jobs well to ensure this
• Financial methods of motivation

  Remuneration

  Bonus

  Commission

  Promotion

  Fringe benefits
• Remuneration 


  Refers to the amount paid to employees for work, may be an annual salary or hourly wage wit over time. employers need to ensure workers are paid enough to satisfy them
• Bonus


  Additional payment, linked to achievement of targets or resulting from high level of performance
• Commission 


  Extra money paid to employee relating to the value of the goods and services they sell
• Promotion


  When an employee is given a more senior role in the business this usually comes with an increased salary
• Fringe benefits 


  Other benefits that financially benefit an employee. This depends on the industry but they may receive a share in the company, company car, free gym membership, subside childcare, free private health insurance etc
• Non-financial methods of motivation

  Job rotation

  Job enrichment

  Autonomy
• Job rotation


  Chance to rotate jobs and move around to different areas of the business doing a variety of work this could be being moved between different projects or to a different production process
• Job enrichment 


  Adding more interesting elements to an employees role, including giving them more responsibility and giving them the opportunity toe develop additional skills
• Autonomy 


  Giving employees the authority to make their own decisions, giving them more control and more job satisfaction as they are not constantly being checked up on. This may include allowing them to set their own schedule