Human resources — section overview

Section 3.4 covers how businesses manage people: from how they are organised to how they are recruited, motivated and trained. People are often described as a business's most important asset.

What 3.4 covers

Sub-topic	Key ideas
3.4.1	Organisational structures: hierarchy, flat, span of control
3.4.2	Recruitment and selection
3.4.3	Motivating employees: financial and non-financial methods
3.4.4	Training: induction, on-the-job, off-the-job

Organisational structures

Hierarchical (tall): many levels of management; narrow span of control; clear chain of command; slow decision-making.

Flat: few management levels; wide span of control; faster decision-making; managers have more direct reports.

Centralised: decisions made by senior management — consistent, but slow and less adaptable.

Decentralised: decision-making delegated lower down — faster, more flexible, but less consistent.

Span of control: number of people directly managed by one manager. Chain of command: the formal route along which orders pass. Delegation: passing responsibility to a subordinate.

Recruitment and selection

Internal recruitment: promote/move existing employees — cheaper, faster, known performer; limits fresh ideas. External recruitment: hire from outside — wider talent pool, new perspectives; more costly and risky.

Process: job description → person specification → advertise → applications → interviews → selection.

Job description: tasks and responsibilities of the role. Person specification: skills, qualifications and attributes required.

Motivation theories (brief AQA overview)

• Taylor (Scientific Management): people work for money → pay-by-results (piecework)
• Maslow (Hierarchy of Needs): basic needs first (pay, safety), then belonging, esteem, self-actualisation
• Herzberg (Two-Factor Theory): hygiene factors (pay, conditions) prevent dissatisfaction; motivators (achievement, recognition) create satisfaction

Financial motivators: wages, salary, commission, bonuses, profit share, fringe benefits. Non-financial motivators: job enrichment, job rotation, autonomy, team working, promotion, recognition.

Training

Type	Definition	Benefit	Drawback
Induction	Training for new starters on role, culture, health & safety	Faster productivity; reduces early mistakes	Upfront cost and time
On-the-job	Training while doing the job	No need to leave workplace; immediately productive	Trainer's time; may pass on bad habits
Off-the-job	Training away from the workplace	Expert tutors; broader skills; fresh perspectives	Cost; employee absent from work

Common exam mistakes in 3.4

1. Flat structure = small business — not always; large organisations (like Spotify) deliberately use flat structures
2. Commission always motivates — for some personalities, guaranteed salary feels more motivating than variable commission
3. External recruitment is always better — it is more expensive and takes longer; internal is often preferred for mid-level roles