WEBVTT 00:00:00.500 --> 00:00:03.955 Welcome to GCSE Edexcel Business revision. 00:00:04.105 --> 00:00:07.809 Unit B U S 10: Making human resource decisions. 00:00:10.467 --> 00:00:15.819 An organisational structure sets out roles, authority and reporting relationships. 00:00:15.969 --> 00:00:21.813 A hierarchy has levels of authority; a chain of command is the route through which authority passes. 00:00:24.467 --> 00:00:29.191 Span of control is the number of employees a manager directly supervises. 00:00:29.341 --> 00:00:33.715 It is not the number of levels in the hierarchy or everyone below that manager. 00:00:36.367 --> 00:00:41.816 A hierarchical or tall structure has relatively many levels and often narrower spans. 00:00:41.966 --> 00:00:47.619 It can offer close supervision and promotion routes but add management cost and slow communication. 00:00:50.300 --> 00:00:53.775 A flat structure has fewer levels and often wider spans. 00:00:53.925 --> 00:01:01.795 It can shorten communication and give employees responsibility, but managers may be overloaded and staff may need more independence. 00:01:01.945 --> 00:01:04.057 A simple reporting structure 00:01:08.733 --> 00:01:12.091 Centralised decision making keeps authority near the top. 00:01:12.241 --> 00:01:17.223 It can support consistency and control but may respond slowly to local needs. 00:01:19.900 --> 00:01:25.487 Decentralised decision making delegates more authority to lower levels or local units. 00:01:25.637 --> 00:01:32.815 It can improve responsiveness and motivation but requires capable staff and can create inconsistent decisions. 00:01:35.467 --> 00:01:42.857 Structure and decision making are related but distinct: fewer levels do not automatically mean all decisions are decentralised. 00:01:43.007 --> 00:01:47.789 The appropriate choice depends on size, skills, risk and need for consistency. 00:01:50.467 --> 00:01:54.237 Communication coordinates work and clarifies expectations. 00:01:54.387 --> 00:02:00.477 Too little can cause errors; excessive messages or meetings can waste time and obscure priorities. 00:02:03.133 --> 00:02:10.716 Barriers include unclear language, unsuitable channels, poor listening, information overload and distance between departments. 00:02:10.866 --> 00:02:14.638 Choose the channel and level of detail for the task and recipient. 00:02:17.300 --> 00:02:20.264 Part-time and full-time describe working hours. 00:02:20.414 --> 00:02:27.933 Flexible hours vary when work takes place, helping some employees balance commitments but requiring coverage and coordination. 00:02:30.600 --> 00:02:36.529 Permanent employment is intended to continue; temporary contracts have a limited period or purpose. 00:02:36.679 --> 00:02:42.394 Freelancers provide work on a contract basis rather than being ordinary permanent employees. 00:02:45.067 --> 00:02:49.397 Remote working uses technology to work away from a usual workplace. 00:02:49.547 --> 00:02:57.795 It can widen recruitment and reduce commuting, but communication, supervision, equipment and the nature of the role affect its suitability. 00:03:00.467 --> 00:03:08.166 Fictional judgement: a growing chain may delegate local stock decisions to store managers but retain central brand standards. 00:03:08.316 --> 00:03:13.553 This can improve local responsiveness while protecting a consistent customer experience. 00:03:16.233 --> 00:03:19.805 Recruitment identifies and selects people to fill roles. 00:03:19.955 --> 00:03:27.569 Effective recruitment matches skills and experience to business needs, reducing unsuitable appointments and later retraining costs. 00:03:30.233 --> 00:03:39.085 Directors guide strategic decisions; senior managers turn strategy into plans; supervisors or team leaders coordinate day-to-day work. 00:03:39.235 --> 00:03:46.391 Operational staff deliver goods or services, while support staff help functions such as finance or administration. 00:03:49.067 --> 00:03:53.973 A job description states duties, responsibilities and key features of the role. 00:03:54.123 --> 00:03:59.647 A person specification sets out the skills, qualifications and attributes needed to do it. 00:04:02.300 --> 00:04:06.285 An application form gathers information in a consistent format. 00:04:06.435 --> 00:04:14.551 A CV summarises an applicant's experience and qualifications; selection may also use interviews or suitable work-related tasks. 00:04:17.233 --> 00:04:20.825 Internal recruitment fills a vacancy from existing staff. 00:04:20.975 --> 00:04:27.309 The business already knows candidates and may spend less on advertising, while promotion can motivate employees. 00:04:29.967 --> 00:04:35.109 Internal recruitment offers a smaller candidate pool and can leave another vacancy. 00:04:35.259 --> 00:04:39.077 It may not bring the new skills needed for a different market or technology. 00:04:41.733 --> 00:04:45.027 External recruitment seeks people outside the business. 00:04:45.177 --> 00:04:51.907 It can bring new ideas and a wider range of skills, but advertising, selection and induction cost time and money. 00:04:54.567 --> 00:04:58.433 Selection should use appropriate criteria and fair procedures. 00:04:58.583 --> 00:05:04.447 The cheapest or fastest recruitment method is not necessarily best if it produces a poor match. 00:05:07.100 --> 00:05:15.472 Fictional case: a shop recruiting an experienced online-sales manager may need external applicants if no current employee has the skills. 00:05:15.622 --> 00:05:20.177 An internal appointment could be quicker but require substantial development. 00:05:22.833 --> 00:05:28.795 Training develops skills for current work; development can prepare employees for future responsibilities. 00:05:28.945 --> 00:05:32.792 Both can improve performance when they address a genuine business need. 00:05:35.467 --> 00:05:38.663 Formal training is structured, such as a planned course. 00:05:38.813 --> 00:05:45.115 It can teach consistent specialist skills but may involve fees, travel or time away from productive work. 00:05:47.767 --> 00:05:51.987 Informal training includes coaching or learning from colleagues during work. 00:05:52.137 --> 00:05:57.906 It can be practical and less costly, but quality depends on the trainer and incorrect habits may spread. 00:06:00.567 --> 00:06:05.611 Self-learning through suitable resources allows employees to work at their own pace. 00:06:05.761 --> 00:06:11.689 They need time, motivation and reliable material; completion alone does not prove competence. 00:06:14.367 --> 00:06:19.762 Ongoing training keeps employees' skills current as tasks, products or technology change. 00:06:19.912 --> 00:06:23.429 Existing employees as well as new recruits may need training. 00:06:26.100 --> 00:06:31.763 Target setting and performance reviews identify needs, discuss progress and agree development. 00:06:31.913 --> 00:06:36.554 Targets should be meaningful and achievable, with support rather than only pressure. 00:06:39.233 --> 00:06:45.280 Training can improve quality and productivity, reduce errors and increase confidence and motivation. 00:06:45.430 --> 00:06:49.597 It can also help retention when employees see opportunities to progress. 00:06:52.267 --> 00:06:57.057 Retraining supports new technology but costs time before full benefits occur. 00:06:57.207 --> 00:07:03.713 Trained employees may leave; compare that risk with the harm of leaving staff unable to use the system effectively. 00:07:06.367 --> 00:07:16.668 Fictional chain: a warehouse trains staff on new stock software leads to records become more accurate leads to fewer orders are delayed leads to customer satisfaction may improve, 00:07:16.818 --> 00:07:20.347 provided the software and procedures also work reliably. 00:07:23.000 --> 00:07:26.315 Motivation is the willingness to put effort into work. 00:07:26.465 --> 00:07:35.303 It can help attract and retain staff, improve productivity and reduce mistakes, although tools, training and conditions also affect performance. 00:07:37.967 --> 00:07:42.001 Remuneration is payment for work, such as wages or salary. 00:07:42.151 --> 00:07:48.997 Competitive pay can attract employees, but higher pay alone may not solve poor management or an unsafe workplace. 00:07:51.667 --> 00:07:55.361 A bonus is an additional payment, often linked to targets. 00:07:55.511 --> 00:08:02.391 It may encourage effort but can promote short-term quantity at the expense of quality if targets are poorly chosen. 00:08:05.067 --> 00:08:08.368 Commission links pay to sales, often as a percentage. 00:08:08.518 --> 00:08:14.821 It can encourage selling but make income uncertain or tempt staff to recommend unsuitable products. 00:08:17.500 --> 00:08:22.854 Worked example: a salesperson earns 4 percent commission on 5,000 pounds sales. 00:08:23.004 --> 00:08:29.253 Commission equals 0.04 multiplied by 5,000 pounds equals 200 pounds . 00:08:29.403 --> 00:08:31.813 Add any stated basic pay separately. 00:08:34.467 --> 00:08:39.650 Promotion offers a more senior role or greater responsibility and often higher pay. 00:08:39.800 --> 00:08:45.207 It can encourage development, but limited promotion opportunities may reduce its impact. 00:08:47.867 --> 00:08:53.221 Fringe benefits are benefits in addition to pay, such as a staff discount or company car. 00:08:53.371 --> 00:08:57.628 Their value differs between employees and they create a cost for the employer. 00:09:00.300 --> 00:09:06.166 Job rotation moves employees between tasks, reducing repetition and building flexibility. 00:09:06.316 --> 00:09:11.065 It needs training and may not motivate someone who dislikes the alternative tasks. 00:09:13.733 --> 00:09:17.538 Job enrichment adds meaningful responsibility or challenge. 00:09:17.688 --> 00:09:23.287 It differs from merely adding more of the same task, and employees need suitable skills and support. 00:09:25.967 --> 00:09:29.451 Autonomy gives employees discretion over how they work. 00:09:29.601 --> 00:09:35.305 It can improve satisfaction and initiative but needs clear goals, trust and appropriate limits. 00:09:37.967 --> 00:09:41.494 Motivation methods should fit the role and employee needs. 00:09:41.644 --> 00:09:48.619 A sales commission may suit measurable individual sales better than a team role where cooperation and safety are central. 00:09:51.300 --> 00:09:56.718 Fictional judgement: a restaurant could reward low complaint levels rather than speed alone. 00:09:56.868 --> 00:10:04.407 Combining recognition, training and fair pay may improve service more sustainably than a bonus that encourages rushed work. 00:10:07.067 --> 00:10:09.935 That completes Making human resource decisions. 00:10:10.085 --> 00:10:13.431 Revisit the notes and test yourself on the revision website.