NAME ___________________________________________
1

Learning outcomes
Describe what an organization structure is
Label organization structures
Identify key components of an organizational structure
Recognise the difference between a wide and narrow span of control
Identify the functional departments within a business
Analyse the benefits of delayering
Analyse the benefits to a business of centralised and decentralised decision-making
Describe and analyse the benefits of delegation
Understand why businesses use the decision-making process they do
Identify why a business recruits and wants to recruit the best workers
Identify the components of the recruitment process
Identify features within the components of the recruitment process
Analyse the rigorousness of the recruitment process
Analyse the benefits of internal and external recruitment
Explain why businesses use recruitment agencies
Identify the main methods of training
Analyse how training can reduce staff turnover and improve product quality
Analyse the benefits of training to a business
Recognise the importance of appraisals within a business
Identify methods of motivation used by a growing business
Analyse the different management styles in motivating employees
Analyse the benefits to a business of retaining employees.
2

Match the key terms to the definitions
1
2
3
4
5
6
7
Organisational structure
Span of control
Chain of command
Hierarchy
Delayering
Responsibility
Accountability
______________________ there are.
Label the organisational structures
When a layer of the organizational structure is removed
A system in which members of an organization are ranked according to status
Being accountable for the actions of someone lower down the organisational structure.
The number of people each manager is directly responsible for.
The direction of information and instructions
The internal links between managers and workers showing lines of authority
The fact of having a job to do
Having an organizational structure makes it clear who is _____________________.
Makes it clear who workers should _________________________ with and take __________________________________ from. It makes it clear how many different _____________________________ and ___________________________
Communicate
Departments
Responsible
Instructions
Layers of management
__________________ organisational structure __________________ organisational structure
3

Draw an arrow on the correct side for each feature below.
Quicker communication as there are fewer layers in the business.
More responsibility is given to each manager and worker – as cannot control everyone all the time.
It is easier to control fewer staff, so managers can closely supervise quality.
Workers may need training to take on responsibility, which could increase motivation levels.
Training costs will be lower as workers will not have to be trained how to take responsibility and decisions.
Responsibility is kept in the hands of senior managers so there is less risk of low-level workers making wrong decisions.
Appropriate for senior managers who believe that workers need to be controlled.
Appropriate for senior managers who believe workers should be involved in decisionmaking.
If an organizational structure has a large span of control, will the manager have less or more control?
(Explain your answer)
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4

These are the typical functional areas of a business (note a business can have many types of functional area)
1
2
3
4
Marketing
Finance
Human Resources
Operations
Responsible for running the manufacturing section of a business
(methods of production)
Responsible for promoting the business and driving sales of its products and services
(4P’s, Market research)
Responsible for workforce planning and recruitment. (Motivating employees,
Rewarding employees)
Responsible for organising the financial affairs of a business. (Income statements, Balance sheets, Cash flow forecasts)
How many layers of hierarchy are there?
General Manager
Department
Managers
Team Leaders
Span of
Control
Exam Hint – Use the diagram in the case study or draw a simple one to support your answer
5

Analyse the benefits to a business of delayering
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Using the organisational structure on page 5, remove one layer (draw below) (explain how decision how it will affect the business)
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6

Draw an arrow on the correct side for each centralised feature below.
Easier to implement common policies
Prevents other parts of the business from becoming to independent
More bureaucratic – often extra layers in the hierarchy
Easier to co-ordinate and control from the centre e.g. with budgets
Local or junior managers are much closer to know the customers’ needs
Economies of scale and overhead savings easier to achieve
Lack of authority down the hierarchy may reduce manager motivation
Customer service does not benefit from flexibility and speed in local decision making
Greater use of specialisation
Quicker decision-making (usually) – easier to show strong leadership
Draw an arrow on the correct side for each decentralised feature below.
Decision-making is not necessarily “strategic”
Decisions are made closer to the customer
Better able to respond to local circumstances
More difficult to ensure consistent practices and policies (customers might prefer consistency from location to location)
Improved level of customer service
May be some diseconomies of scale – e.g. duplication of roles
Consistent with aiming for a flatter hierarchy
Good way of training and developing junior management
Who provides strong leadership when needed?
Harder to achieve tight financial control – risk of cost-overruns
Should improve staff motivation
7

Define the term delegation
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List two advantages for a business that encourages delegation
1.
2.
List two potential disadvantages for a business that uses delegation
1.
2.
Explain why McDonalds predominantly use centralized decision-making.
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To what extent do Tesco’s have a decentralized structure? (List your key points)
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8

Explain why there would be duplication of roles if a business used a decentralised structure
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Why would a decentralised structure potentially improve the level of customer service?
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What do you understand by the term specialisation?
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9

It is important for a business to recruit the best workers for each job. High
_____________________ means the workers will be _____________________
It is vital that recruited workers provide high quality ______________________ and ___________________. This can result in higher __________________ and also help with the ___________________ of staff.
Match the key terms to the definitions
1
2
3
4
5
Person Specification
Job Analysis
Job Advert
Selection of New Workers
Job Description
Order the stages of the recruitment process
(Note some businesses may have a slightly different process)
Using the text book list the key features of job analysis
1.
Person Specification
Job Analysis
Job Advert
Selection of New Workers
Job Description
Productivity
Profits
Customer service
Efficient
Retention
Output
Identifying the tasks and skills needed to perform a job well
A profile of the type of person likely to make a good applicant
A detailed statement of the nature of the job and the tasks involved
A way of informing potential candidates
(internal and external) about a job)
Normally includes a formal interview and potentially some form of test or display of ability
2.
3.
4.
10

State three pieces of information likely to be included in a job advert
1.
2.
3.
What is the purpose of a job advert?
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Describe the difference between a job description and a person specification
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Using the person specification below answer the following questions
11

What is the difference between essential and desirable?
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Why might a business assess some of the requirements through an interview rather than an application form?
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List two requirements from the person specification that could be assessed through a mock lesson (Explain your answer)
1.
2.
Why might a business prefer you to complete an application form to a CV? (Think school uniform)
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Other forms of testing can include an aptitude test, which could test numerical, verbal, diagrammatic reasoning or situational judgement
Try some out for yourself - http://www.practiceaptitudetests.com/
12

Draw an arrow on the correct side for each feature below.
Gives existing workers a chance of promotion or an opportunity to do another job. This should motivate and incentivize workers to do well.
The workers will not need any induction training.
Wider choice of potential applicants.
The skills and personality of candidates should already be well known.
Could be better qualified and of higher quality.
Prevents breaking up existing teams and avoids jealousy of people being promoted over other workers
Normally quicker and cheaper
Avoids creating another vacancy that will have to be filled.
What is a recruitment agency?
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Why might larger companies prefer to use a recruitment agency rather than attempt to attract employees themselves? (Explain your answer)
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13

Match the key terms to the definitions
1
2
3
Induction training
On-the-job training
Off-the-job training
Takes place away from the job at another place (e.g. the businesses training centre or a 3 rd party training centre)
Takes place when employees receive training as they are working at the place of work
Initial training to familliarise new recruits with the systems of a business
List up to four benefits of staff training.
1.
2.
3.
4.
Explain how staff training can reduce staff turnover.
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Explain how staff training can improve the quality of products being produced or service provided.
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Number of employees
Current output per employee (per day)
(5 days per week)
Cost of training per employee
Potential increase in output
Selling price per unit
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£1600
10%
£12
Using the table above calculate whether you would advise the business to undergo the training
(show your workings)
Explain why there would be a potential increase in output because of training, what other changes could occur?
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15

Other than the cost of training how else is a business affected by staff under taking training?
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Your current employer has recently trained you – why might they be concerned that you may leave the company? What can they do to prevent you from leaving?
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Training is the process of increasing the ___________________ and
_______________ of the workforce to enable them to perform their jobs
____________________. This can include improved ___________________ and higher standards of ___________________. Training can also be beneficial in keeping up with advances in ___________________ or to address changes in
____________________. Training has to support employees in
_________________________ and allow opportunities for _____________________.
NOTES
Technology
Knowledge
Promotion
Legislation
Skills
Customer service
Effectively
Productivity
Progression
16

List four features of induction training
1.
2.
3.
4.
Explain why a business does induction training.
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You are new to the business and are provided on-the-job training by an employee who has worked at the business for 6 years. Analyse the effects of this type of training.
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On-the-job training is directly relevant to the job being undertaken and does not involve the additional cost of taking the worker away from the place of work.
17

Draw an arrow on the correct side for each method of training below.
Day release (employee takes time off work to attend a local college or training centre)
Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments)
Distance learning / evening classes
Block release courses - which may involve several weeks at a local college
Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee
Sandwich courses - where the employee spends a longer period of time at college (e.g. six months) before returning to work
Demonstration / instruction - showing the trainee how to do the job
Sponsored courses in higher education
Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"
Self-study, computer-based training
How does off-the-job training motivate an employee? (Explain your answer)
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Using the points below – explain why a business would use off-the-job training.
 Greater specialist knowledge of trainers
 Easier to confirm training has taken place
 No one with adequate skills in-house

Possible insurance requirement.
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Exam Tip
Both methods of training can be very useful to a business. It is important that you understand why a business would choose to use one method over the other.
Always apply your knowledge to the case study!!!
19

Match the key terms to the definitions
1
2
Superiors
Self-Appraisal
Carried out by work colleagues at the same level within the organisation – potential to be biased.
The employees senior manager assesses the performance based on their knowledge of work done since the last appraisal
Employees assess their own performance – this can be discussed and agreed with a superior.
3 Peer Appraisal
How does a teacher know if you are doing well?
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Self-assess your performance in Business Studies
How are your grades?
1
V. Poor
2
How is your behavior?
3
1
V. Poor
2 3
Set yourself 3 targets (SMART)
1.
4
4
5
5
6
6
7
7
8
8
9
9
10
V. Good
10
V. Good
2.
3.
Would you give yourself a reward based on the information above?
20

Tick the features, which are a benefit of staff appraisals
Provides feedback to the employee
Can be time consuming for a business to undertake
Makes suggestions for improving performance
Identifies training needs
Can be used to help set objectives which the employee has to meet
Potential to be biased and create unfair appraisals
Provides the business with evidence for potential internal promotions
If no set procedure in place, can cause arguments as workers appraised differently
Provides evidence for or against potential pay increases or other rewards
Increases motivation as employees can feel that an interest is being taken in them
Can be used to help set objectives – these should be agreed with the employee
How can feedback help a business improve training for its employees? (List as many as you can)
1.
2.
3.
4.
Explain one of the points above.
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21

Do not forget the theorists
Circle the correct person to whom the theory belongs.
Maslow
Hertzberg
McGregor
Mr Mills
Mayo
Taylor
Circle the correct person to whom the theory belongs.
Maslow
Hertzberg
McGregor
Mr Mills
Mayo
Taylor
Circle the correct person to whom the theory belongs.
Maslow
Hertzberg
McGregor
Mr Mills
Mayo
Taylor
22

List two benefits of motivated workers
1.
2.
List three main methods a business could use to motivate employees
1.
2.
3.
As already mentioned – staff that are trained feel as though they have a worth to the business and will therefore potentially be more motivated. Untrained staff may feel they have low value and therefore may not work as well.
Label the two diagrams with the correct style of management
23

Different management styles are suited to different workers and/or different situations.
Which style of management would you use?
4
5
6
2
3
A = Autocratic
1
D = Democratic
Problem
Employees are having serious problems getting the job done. They have not responded to your efforts to be friendly or to your invitations to get involved in discussions.
You are considering a major change in your program. Employees enjoy participating in the planning.
You want to encourage team building and participation.
Decisions are easier and more cost-effective for the manager to make the decision.
The staff are very inexperienced and need guidance with decision-making.
You are very busy and want to delegate some of the decision-making.
Style
Exam Tip
Autocratic managers want to take all the decisions and pass on only instructions to workers.
Democratic managers like to involve workers in the decision-making process.
Either method could motivate an employee it all depends upon how they could be motivated (think theorists). Make sure you can explain why an employee would be motivated under either of the different styles of management.
24

Match the pay method with the correct advantage, disadvantage and impact on motivation
Pay Method Main Advantage Main Disadvantage
1
2
3
4
Piece rate – a fixed amount for producing each unit or work
Hourly wage
Salary – fixed annual sum, paid monthly
Profit sharing – a share of annual profits is given as a bonus in addition to basic pay
Makes workers more responsible towards the company and keep to help it increase profits
Should lead to higher output if workers are only motivated by the chance of earning more money.
Provides pay security – workers know exactly how much they will receive each month.
Workers can calculate how much they should receive each day or week.
Does not provide any direct incentive to increase output or put in extra effort.
No direct link between daily effort and pay. Works best with an appraisal system to determine salary level for the next year.
What happens when a loss is made? There might be some lack of pay security, such as during a recession.
May lead to poor quality if workers rush jobs just to increase output
Possible impact on motivation
May help to keep staff in the business if they consider that profits are likely to increase.
Should have a positive impact on long-term responsibility and motivation
Most commonly used pay method for permanent managerial staff, so when offered to other workers it gives status and security.
If annual appraisals are used staff may work hard to achieve annual targets so that a higher salary might be offered.
Provides more pay security that piece rate, which is important to most workers. It also encourages staff to work overtime.
Assumes workers are only interested in pay. Some may be motivated by job security, social factors, the chance of promotion and recognition by management.
25

What types of payment and training would each management style use?
Autocratic would…
Democratic would…
Exam Tip – make sure to read the case study – if it says the business is unable to pay higher wages, then do not suggest it as a method of improving motivation – look at fringe benefits
What benefits does a business experience of retaining employees? (List your points)
1.
2.
3.
4.
Would you want to work for a business that has a high staff turnover? (Explain your answer)
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