Unit 4

Unit 4

1. 4.2) Recruitment and Selection of Employees

2. 4.4) Training

3. 4.3) Motivating Employees

4. 4.1) Organisational Structures

   • There are various ways of arranging the business organisational structure. These are known as: Tall and Flat Structures
     • Tall structures
       • The organisational structure has many layers, long chains of command and narrow spans of control
     • Flat Structures
       • The organisational structure has few layers, short chains of command and wide spans of control
   • Delayering
     • When a business grows, it becomes more difficult to control, coordinate and organise. Therefore in some cases it might be necessary to add in additional managerial positions into the hierarchy, creating another layer in the organisation.
     • In reverse if a business is decreasing in size or aiming just to reduce costs, it may well decide to take out a layer of management. This process is known as delayering.
   • Centalisation
     • Businesses that have a centralised structure keep decision-making firmly at the top of the hierarchy, amongst the most senior management.
     • Fast-food businesses use a predominantly centralised structure to ensure that control is maintained over their many thousands of outlets. The need to ensure consistency of customer experience and quality at every location are the main reasons why centralisation is chosen.
     • Benefits
       • Consistency will exist amongst branches, therefore the customer experience will be uniform.
       • Easier to implement common policies and practices for the business as a whole.
       • Decisions are taken for the benefit of the whole business not one division or department.
     • Drawbacks
       • There are often more layers in the organisation, which will increase costs.
       • Local or junior managers are likely to be much closer to customer needs, therefore the best decisions for the local area may not be taken by the business.
       • Lack of authority down the hierarchy may reduce staff motivation.
   • Decentralisation
     • In a decentralised structure, decision-making is spread out to include more junior managers in the hierarchy, as well as individual business units, such as specific stores, or trading locations.
     • Hotel chains are particularly keen on using decentralised structures. Local hotel managers are empowered to make on-the-spot decisions to handle customer problems or complaints.
     • Drawbacks
       • Decision-making is not necessarily looking to the long term future direction of the business.
       • More difficult to ensure consistent practices and policies, customers might prefer consistency from location to location.
       • Harder to control costs, which means the business may end up over-spending
     • Benefits
       • Decisions are made closer to the customer and therefore are more likely to reflect their specific needs.
       • Good way of training and developing junior management.
       • Should improve staff motivation
   • Why Organisational Structures?
     • As a business grows, it will need a formal organisational structure to ensure that it runs as efficiently as possible.
     • The organisational structure will make it clear of the direct reporting lines found within the business.
     • Identify specific job roles to ensure that there is no duplication of workload.
     • This will ensure that all staff have clear responsibilities and therefore can operate as productively as possible.
   • Different Job Roles
     • MANAGING DIRECTOR / CEO
       • The Managing Director or CEO is the highest ranking person in an organisation and has ultimate authority within the business.
       • In a PLC, the CEO/MD will be voted into position by the shareholders at the AGM.
     • DIRECTORS
       • Below the CEO/MD in the hierarchy, there will be several directors. In a large company, a director will be in charge of a department of functional area, for example the Finance Director.
       • Collectively, directors will form the Board of Directors who manage the company at a strategic level.
     • MANAGERS
       • In a large organisation, there may be several levels of management in the hierarchy. Senior managers will directly report into the Directors.
       • Managers will be responsible for a significant part of the business operation and will be in charge of the performance of a number of employees.