3.4 Human resources

Students should understand the interdependent nature of business operations, human resources, marketing and finance. Students should be able to give examples of how business objectives would be split into functional plans with clear links throughout.

The purpose of human resources, its role within business and how it influences business activity.

3.4.1 Organisational structures

Content

Additional information

  • Organisational structures
  • Appropriateness of organisational structures
  • Centralisation and decentralisation

Students should be able to understand:

  • internal organisational structures, span of control, chain of command, delayering and delegation
  • why businesses have internal organisational structures, including an understanding of different job roles and responsibilities throughout the business
  • the impact that having a tall or flat organisational structure has on how a business is managed
  • how organisational structure may affect the different ways of communication.

3.4.2 Recruitment and selection of employees

Content

Additional information

  • The need for recruitment
  • Methods of recruitment and selection of employees
  • Contracts of employment
Students should be able to:
  • understand the difference between internal and external recruitment and the benefits and drawbacks of each approach
  • outline the main stages in the recruitment and selection process, including an understanding of job analysis, job description, person specification, and selection methods
  • analyse the benefits of having an effective recruitment and selection process for a business, including high productivity, high quality output or customer service and staff retention
  • understand the difference between part time and full time contracts, job share and zero hour contracts
  • understand the benefits of full and part time employment.

3.4.3 Motivating employees

Content

Additional information

  • Importance of motivation in the workforce
  • Methods to motivate staff
Students should be able to:
  • understand the benefits of a motivated workforce, such as staff retention and high productivity
  • understand the use of financial methods of motivation (including an understanding of the main methods of payment including salary, wage, commission and profit sharing)
  • understand the use of non-financial methods of motivation, including styles of management, importance of training and greater responsibility, fringe benefits.

Specific motivational theories (such as Maslow) will not be examined.

3.4.4 Training

Content

Additional information

  • Importance of training the workforce
  • Types of training undertaken by businesses
Students should be able to:
  • explain the benefits of training employees for a business, including increased productivity, ability to deal with changes in technology, increased motivation, staff retention, production of high quality goods and good customer service
  • understand the methods of training undertaken by businesses, including induction training, on the job training and off the job training
  • explain the benefits of induction training
  • analyse the benefits and drawbacks of on the job and off the job training and evaluate which would be the most appropriate method for a variety of businesses.