People in Business The revision session!

Main Objectives of the chapter Understand why managing people is important Understand the importance of organisational structures Understand the importance of recruitment and retention Understand the advantages and disadvantages of training Understand how employees can be motivated financially and non financially.

Organisational structure

Organisational structure There are a number of benefits to an organisational structure, what are they? Who’s responsible for who Makes clear who workers should communicate with and take instructions from Make clear how many layers of management there are

Organisational structure Chief Executive Department managers Team Leaders Employees Key Features 4 layers of management called “levels of hierarchy” Each manager is responsibly for 2 people, this is called a “span of control”

Organisational structure General manager Supervisors Employees Key features This structure only has 3 layers so it is flat not tall The span of control for the supervisors is 5, this gives a wide span of control

Recruiting staff

A business wants to recruit the best workers because? High productivity High quality output Great customer service Higher profits Workers will be less likely to leave as they will be doing a job that they are good at

How to recruit the best staff The recruitment process has many aspects. Analyse the job Design a job description Design a person specification Advertise the job Send out application forms or read CV’s Shortlisting Interviews and selection Job offer References Contract of employment

Internal and external recruitment Internal recruitment Appointing existing staff External recruitment Appointing someone from another business to fill a vacancy

Task recruitment List advantages and disadvantages internal and external recruitment

Types of training Induction On the job training Off the job training Initial training to familiarise recruits with the systems of a business On the job training training at work Off the job training Training away from the place of work

Task types of training Advantages and disadvantages of 3 training types

Staff appraisals Appraisals are usually done by senior staff or managers. It is a detailed interview questioning how staff think they are getting on.

Motivating staff What are the benefits of a well motivated work force? Increased productivity Improved quality Less absenteeism Low staff turnover Improved customer satisfaction

Managers motivate people Autocratic Managers take all the decisions and pass instruction Democratic Managers involve workers and less senior managers in decision making Laissez- Faire ‘Leave to do’ employees left to make their own decisions

Task managers style Which style best suits these jobs? Army sergeant Manager of a production line Marketing manager Sales manager Chief of police

Pay to motivate! Piece rate Hourly wage Salary Profit sharing A fixed amount for producing each unit Hourly wage Paid by the hour Salary Fixed amount of money paid monthly Profit sharing A share of annual profits given as a bonus