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 – Interviews and selection
– Design a person – Job offer
specification – References
– Advertise the job – Contract of employment
– Send out application
forms or read CV’s
– Shortlisting
 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
– 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
– 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