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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…

Page 2

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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…

Page 3

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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.

output per period
labour productivity = number of employees per period

Labour productivity may be increased by:

· recruiting suitably skilled and…

Page 4

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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…

Page 5

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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…

Page 6

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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…

Page 7

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Unit 4: People in Business

Methods of Training:
Training involves employees being taught new skills or improving existing skills. Businesses
decide to spend money on training employees because:

- the development and introduction of new products
- restructuring of the firm
- the development and introduction of new technology

Page 8

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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…

Page 9

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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…

Page 10

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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)


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