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Effective People Management (Organisational structure (organisation charts…
Effective People Management
Remuneration
Payment Systems - methods of organising the payments of workers, such as piece rates or salaries
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Salaries - pay, usually of non-manual workers, expressed as a yearly figure but paid monthly
White Collar or Non manual workers - workers who do non-physical work, like an office worker or teacher
Results-based system
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Commission
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payment system usually operated for sales staff where their earnings are determined by how much they sell
Bonuses - addition to the basic wage or salary, for instance, for achieving a target
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Fridge Benefits - payments in kind over and above the wage or salary, such as a company car
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Organisational structure
Chain of Command
the path (or chain) down which orders (or commands) are passed. In a company, this goes form the board of directors down to other workers in the organisation.
The person at the top of the organisational pyramid is in a position of authority over workers lower down the pyramid. They can give orders to workers down the hierarchy their subordinates.
Therefore there is a chain of command form the top to the bottom.
organisation charts
a diagram which shows the internal structure of an organisation 
it shows the hierarchy which is the structure of different levels of authority in a business organisation, one on top of the other. The most senior members of the company are at the top.
The person immediately above the worker to whom her or she reports to is called the line manager.
workers specialise in the jobs the do. Each is given a job to do and they need to know
What job they are supposed to do;
Who is in charge of them;
Who they are in charge of;
How they relate to the wider organisation
all of this can be shown in an organisational chart.
Centralisation
a type of business organisation where decisions are made at the centre or core of the organisation and then passed down the chain of command.
Problems with centralisation -
it can take long periods of time to make decisions and respond to the needs of the market
decenturalisation
a type of business organisation where decision making is pushed down the hierarchy and away form the centre of the organisation.
benefits to decentralisation -
encourages workers to change quickly according to the business making changes to the environment.
it gives power to those who are closest to customer, suppliers and to the market.
Span of contol
Sales director will supervise some workers (sales managers) then each of the sales managers controls other workers in their department. The number of people that a worker directly controls is called a span of control.
it varies how big it is depending on circumstances.
With a more complex supervision task there will be a smaller span of control
Groups, Teams and delayering
some businesses have very long chains of command they try to solve their problem by delayering which is when the business changes the way it is organised by removing some of the levels of management and Changing job roles. They cut out large numbers of middle managers, pushing responsibility and decision making down the line.
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Vertical communication - communication between staff of different levels in the organisational hierarchy.
Horizontal communication - communication between staff of the same level in the organisational hierarchy.
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Monetary tactics
- Piece rate, payer workers for everything they make.
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- Time rate, paid of number of hours worked
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