2.5.4

Effective Recruitment

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Benefits of Having an Effective Recruitment Process

Having an effective recruitment process means that the firm is more likely to attract and select the best possible people for the job. This can have several positive effects:

High productivity

High productivity

  • Productivity should be higher with more skilled, harder working employees. A recruitment process that is effective will attract these employees and this should lead to higher output for the firm.
High quality output

High quality output

  • People who are more skilled and are a better fit for the job will produce higher quality output.
Good customer service

Good customer service

  • People who are better suited to a particular job and a particular firm are more likely to care about the firm and its image. Because of this, they may make more effort to do their best and offer good customer service.
Staff retention

Staff retention

  • Recruitment and training are usually expensive. This means that retaining (keeping hold of) staff is important for a firm.
  • Finding a person that is right for the job will likely mean that they stay much longer.

Internal Organisational Structures

An organisational structure is the system that defines a hierarchy in an organisation. An organisational structure identifies every job in an organisation, the responsibilities of each job and how each job is related to other jobs.

Hierarchy

Hierarchy

  • A hierarchy just means layers, with certain jobs within the organisation having authority over others.
  • Jobs higher up in the hierarchy will therefore have more power in decision making.
  • The manager of a football team manages the players and guides them on what to do in a game. Jose Mourinho used to manage Paul Pogba (with difficulty) in the hierarchy at Manchester United.
Directors

Directors

  • Directors are at the top of an organisation’s hierarchy. They have the most influence over a company’s decisions.
  • Directors decide what the firm’s strategy is and make important decisions for the business as a whole.
Managers

Managers

  • Managers are the next rung down on the ladder.
  • They help to communicate the strategy of the firm to their subordinates (people below them in the hierarchy).
  • They also organise the people below them in the hierarchy (span of control) to achieve the firm’s objectives.
    • Note – there may be more than 1 layer of managers within a firm.
Supervisors

Supervisors

  • Supervisors are the lowest level of people in a hierarchy that are still responsible for managing other people.
  • They manage the people at the lowest level of the organisation.
  • These people usually manage specific projects that are conducted (done) in small teams.
Operatives

Operatives

  • Operatives are at the lowest level in an organisation. They are people who are not responsible for anyone else in the organisation.
  • In a hotel, a normal cleaner is usually an operator.
  • Similarly in a restaurant, a pot washer is usually an operative and does not manage anyone else.
    • Factory workers are often operatives.
Jump to other topics
1

Investigating Small Business

1.1

Enterprise & Entrepreneurship

1.2

Spotting a Business Opportunity

1.3

Putting a Business Idea into Practice

1.4

Making the Business Effective

1.5

Business Stakeholders

2

Building a Business

2.1

Growing the Business

2.2

Making Marketing Decisions

2.3

Making Operational Decisions

2.4

Making Financial Decisions

2.5

Making Human Resource Decisions

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