Section 2 - Human Resources

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Section 2 ­ Human Resources
Internal Organization ­ Departments
Production ­ To produce goods which are sold. To plan out how to produce .
Finance ­ Raise funds to purchase for all expenses and pay bills.
Human R. ­ To ensure staff are at work and keep them motivated and they recruit more staff if needed.
Marketing ­ To carry out market research.
Sales ­ Ensure most amount of sales is achieved.
Customer service ­ Main function is to make customers happy and deal with complaints.
Importance of Internal organization
1) Helps to organize the business. 2) Know how much authority you have. 3) Easier to delegate. 4) What the role
Span of control ­ No. of people a superior is responsible for
Hierarchy ­ No. of levels of management in a company
Chain of command ­ Way in which decisions and messages are passed down and up.
Delegation ­ Giving the authority to carry out a task.
Communication = sender message and the way its sent Receiver
Can be internal or external.
Effects of poor communication ­ Delay in production , cost rise, demotivation, mistakes, and decisions are made late,
false information, conflicts between employees.
Barriers to communication: Message unclear, Technological breakdown, poor communication skills, jargon, LCOC,
using wrong medium, language differences.
Ways to overcome the problems : Train, Recruit, improve technology, remove management levels, social events.
3 types : Written, facetoface and electronic communication
Recruitment and selection ­ internal and external.
Internal ­ cheaper, faster, you know the person and he knows the business. / limited choice, still need to recruit, no
fresh ideas
Stages : 1. Decide the job. 2) Draw up job specification/description 3) Advertise. 4) Send out applications. 5) Collate all
forms. 6) Draw up shortlist. 7) Invite candidates for interview. 8) Decide the best person for the job.
Ways to do it ­ Headhunting, word of mouth, agencies, job centers, direct applicants.
Legislation and HR
Business can be involved in expensive legal battles, fail to recruit best staff, demotivate, create tensions and worsen
image if they discriminate.
Sex discrimination Act ­ person shouldn't be discriminated of gender
Race Relations Act ­ white/black etc.
Disability Discrimination Act ­ Physical disabilities etc.
Equal pay Act employees working at same level and require same effort and skill should be paid the same

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Section 2 ­ Human Resources
Health and safety at work Act good space , safe , clean etc.
Induction ­ given to new employees and show them around the workplace, meeting with team, look at workplace etc.
Onthejob ­ Worker trained at workplace .
Pros ­ output made, relevant, cheaper, can be easy to organize .
Cons ­ can make mistakes, stressful, frustrated if unpaid, could be damaging, ruin reputation of company.
Offthejob ­ employees are trained away from normal workplace.…read more

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