Notesale: Turn your study into money

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Topic 1
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EMPLOYEES AS ASSETS
EMPLOYEES AS A COST
Provide
good
remuneration Pay workers the minimum
packages
Give reasonable holiday and sick Provide the minimum legal sick
pay
and holiday pay
Invest in the working conditions
Provide basic working conditions
Provide workers with job security Maximise output while minimising
staff costs
See training as an investment
See training as unnecessary
Delegate responsibility
Centralise decision-making
Take care in developing policies Give thought to employee
that motivate staff
motivation
 Employees may be dismissed from work for failing to meet the
required standard or through misconduct
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 Redundancy applies where there is no work, not enough work or the
position no longer applies
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Flexible Working
In order to adapt to the changing demands of the business
environment, a firm may want to adopt a flexible approach to its
workforce
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 Approaches to flexible working
 Part-time and temporary contracts
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g
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 Multi-skilling employees so that they can carry out multiple roles
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committed to the company if they
do not have a permanent contract
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experts who do not have to be
permanently employed
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Outsources work may be of a
lower quality
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 Focus on negotiations through collective bargaining
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 Represent members at industrial tribunals and give workers advice on
employment issues
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 Decline of trade unions membership over past 20 years
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 Members elected from the workforce by the workforce
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 Allows the workforce to be heard without trades union representation
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 Informal groups set up by workers to focus on a aspect of work
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 Employee committees influence decisions made at works councils
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The Managing Director may have
ultimate authority but there will be a group of directors known as the board
of directors who will take responsibility for various functions of the firm
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They may be responsible for a
department and report to the directors
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They may
have delegated responsibility from a manager
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Categories:
 PROFESSIONALS – staff with high levels of qualifications and experience
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g
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 OPERATIVES – skilled workers who are involved in the production of a
product or the delivery of a service
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 GENERAL STAFF – roles carried out by workers with non-specific skills
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g
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Organisational Design

Recruitment







The process of finding and hiring a person for a specific job role that
needs filling within a firm
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 Cheaper than external recruitment
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 May require less training
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EXTERNAL RECRUITMENT – involves bringing new employees in from
outside the organisation
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 May attract a wider number of applicants
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 Helps increase the capacity within the firm
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 Output may continue as learning is through actually doing the job
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 However, it can be disruptive for others and mistakes are possible
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 Mistakes reduced as training is not on site
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 However, it might be costly and may not always be relevant
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Another danger is that the
employees may leave the organisation and the investment is then lost
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CHAIN OF COMMAND – refers to the levels in the hierarchy
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Organisations
naturally increase the levels of the hierarchy as they grow
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An organisation with a wide span of control will
encourage delegation and is referred to as having ‘flat’ hierarchy
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It can be used to
lighten the workload of key personnel as the organisation grows and can be
a key aspect of job design as it leads to job enrichment for junior members
of staff
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CENTRALISATION – refers to a decision-making process whereby the
majority of decisions are led by senior managers
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 Appropriate for situations where managers have the knowledge and
workers are low skilled
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 More suitable in times of crisis
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DECENTRALISATION – refers to a decision-making process whereby the
majority of decisions are delegated to managers in charge of regions,
functions, and product categories
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 Appropriate where firms are spread over a wide geographic area and
local trends and needs are important
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 Allows for flexible working conditions and supports job enrichment

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