Flashcards · 1BS0 · Topic 2.5

Making human resource decisions flashcards

20 cards on Topic 2.5, subtopics 2.5.1 to 2.5.4. Pick a subtopic or study them all.

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2.5.1 Organisational structures

Hierarchical versus flat structures: Hierarchical: many layers and small teams; clear authority and promotion steps, but slow messages and more managers to pay. Flat: few layers and larger teams; quick messages and fewer managers, but managers may be overloaded.
Centralised versus decentralised organisation: Centralised: important decisions made at the top; consistent and tightly controlled, but slow to respond. Decentralised: decisions passed down to branches or teams; quick, uses local knowledge, but branches may be inconsistent.
Effects of insufficient and excessive communication: Insufficient: mistakes, missed tasks, mixed messages; staff feel ignored. Excessive: time lost in meetings and messages, key messages missed; staff feel their time is wasted.
Barriers to effective communication: Unclear wording or jargon, the wrong method for the message, language differences, faulty technology, too many layers, noise or distraction.
Different ways of working: full-time, part-time, flexible hours, permanent, temporary, freelance: Full-time: the standard week. Part-time: fewer hours. Flexible hours: some choice over when hours are worked. Permanent: no planned end. Temporary: fixed period or task. Freelance: self-employed, paid for the job.
The job roles and responsibilities named in the specification: Directors set direction and major decisions; senior managers turn plans into department plans; supervisors or team leaders organise daily work; operational staff do the main work; support staff help others do their jobs.

2.5.2 Effective recruitment

Job description versus person specification: Job description: the job (title, duties, reporting line, place, hours). Person specification: the person wanted (qualifications, skills, experience, qualities).
Application form versus CV: Application form: a standard form designed by the business, with the same questions for all. CV: written by the candidate, summarising education, experience and skills.
Internal versus external recruitment: Internal: cheaper and quicker, known skills, shows promotion is possible, but no new ideas and leaves a gap elsewhere. External: a larger pool with new skills and ideas, but dearer and slower, and the new person must learn the business.
An agency charges 10% of a £24,000 salary and the advert costs £350. What is the total external recruitment cost?: 10% × £24,000 = £2,400, plus £350 = £2,750.

2.5.3 Effective training and development

Formal training, informal training and self-learning: Formal: planned and structured, often away from work, may give a qualification; costly. Informal: learning during work, such as shadowing or coaching; cheap but depends on the teacher. Self-learning: the employee takes charge; own pace but needs discipline.
Target setting and performance reviews: A target is a goal to be reached by a set time. A performance review is a meeting to assess work against targets, give feedback and agree next steps; it finds training needs but takes manager time.
Why do businesses train and develop staff?: Training builds confidence and satisfaction, which can raise motivation and improve retention (saving recruitment costs). Retraining for new technology means the investment is used well. Risk: a trained employee may leave for a rival.
Training versus development: Training teaches skills for the present job. Development prepares an employee for more responsibility in the future.

2.5.4 Motivation

The three reasons motivation matters, named in the specification: Attracting employees, retaining employees and productivity.
Financial methods of motivation in the specification: Remuneration (wage or salary), bonus (extra for a target or results), commission (pay linked to sales), promotion (higher post, usually more pay) and fringe benefits (extras on top of pay).
Job rotation, job enrichment and autonomy: Job rotation: moving between tasks at planned times, giving variety. Job enrichment: adding more challenging, responsible tasks. Autonomy: freedom to decide how to do the work.
A sales assistant earns £1,400 a month plus 5% commission on sales of £24,000. What is the total pay?: Commission = 0.05 × 24,000 = £1,200. Total = £1,400 + £1,200 = £2,600.
A bonus of £2.50 is paid for every unit above a target of 120. An employee makes 164. What is the bonus?: Extra units = 164 − 120 = 44. Bonus = 44 × £2.50 = £110.
Bonus versus commission: A bonus is linked to meeting a target or good results. Commission is linked to sales made, usually a percentage of sales.