people in business unit 2

poeple in  business unit 2

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Unit 4: People in Business
Improving Organizational Structures
Organizational structure: the relationship between different people and functions in an
organization -- both vertically, from shop-floor workers through supervisors and managers to
directors, and horizontally, between different functions and people at the same level.
Organization chart: a diagram showing the lines of authority and layers of hierarchy in an
Organizational hierarchy: the vertical division of authority and accountability in an
Levels of hierarchy: the number of different supervisory and management levels between
the shop-floor and the chief executive within an organization
Span of control: the number of subordinates a manager is required to supervise directly.
· If a manager has many subordinates answerable to him or her, the span of
control is said to be wide.
· If a manager has relatively few subordinates answerable to him or her, the
span of control is said to be narrow.
· Normally, the greater the degree of similarity in what a group of workers do,
the wider the span of control can be.
· Traditionally, organizations tended to have very tall hierarchical structures, i.e.
many layers of management, each with a narrow span of control.
· More recently, hierarchies have become flatter, meaning that the number of
layers of management has been reduced and each manager has a wider span
of control

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Unit 4: People in Business
Delegation is the process of passing authority down the hierarchy from a manager to
a subordinate.
o Delegation must be based on mutual trust between manager and
o Subordinates must be appropriately skilled, trained and informed about the
particular task they will be responsible for.
o Interesting and challenging tasks should be delegated as well as the more
o Responsibility and authority must be delegated.
o The limitations of the subordinate's authority should be made clear too.…read more

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Unit 4: People in Business
Measuring the Effectiveness of a Workforce
Labour Productivity:
Labour productivity is a measure of the output per worker in a given time period.…read more

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Unit 4: People in Business
Absenteeism shows the proportion of employees not at work on a given day
number of staff absent per day
absentee rate = total number of staff ×100
The causes of absenteeism may include:
serious accidents and illness
low morale
poor working conditions
boredom on the job
lack of job satisfaction
inadequate leadership and poor supervision
Personal problems (financial, marital, substance abuse, child care etc.…read more

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Unit 4: People in Business
Effective workforce: Recruitment, Selection and Training
The Recruitment Process:
Recruitment refers to the process of attracting, screening, and selecting qualified people for
a job at an organization or firm.
Internal recruitment: filling a job vacancy by selecting someone from within the
The employee's abilities are known already.
Internal promotional opportunities are motivating for the workforce.
A shorter induction period is required.
It is less expensive.…read more

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Unit 4: People in Business
Staff within the company may believe they should be considered first ­ loyalty
Selecting the Best Employee:
There are several methods you can use to determine whether an applicant is suitable for the
job or not:
Application Forms/CV's
- An application form provides information in a standard format.…read more

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Unit 4: People in Business
Methods of Training:
Training involves employees being taught new skills or improving existing skills.…read more

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Unit 4: People in Business
Off-the-job training: all forms of employee education apart from that at the immediate
workplace, ie learning skills away from the workplace
This type of training gets employees away from their work environment to a place
where their frustrations and bustle of work are eliminated. This more relaxed
environment can help employees to absorb more information as they feel less under
pressure to perform.…read more

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Unit 4: People in Business
Motivation: the causes of people's actions -- why people behave as they do.
Financial Methods of Motivation:
Money as a motivator can lead to problems for both individuals and organizations:
Rewards fluctuate with the performance of the company and this can cause
uncertainty in financial planning if employees come to depend upon rewards.
If financial incentives are high and based on quantity, quality may be sacrificed,
with serious long-term consequences for organizations.…read more

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Unit 4: People in Business
Job Enlargement: increasing the scope of a job, either by job enrichment or by job rotation.
- Job Enrichment: jobs are expanded vertically (known as vertical extension) by
giving the worker more responsibility
- Job Rotation: jobs are expanded horizontally (known as horizontal extension)
by giving the worker more tasks, but at the same level of responsibility.
Empowerment: giving employees the means by which they can exercise power over their
working lives.…read more


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