IB Business Management: Unit 2

Human Resource Management

The management of an organization's human resources, including recruitment, retention, compensation, benefits, and job responsibilities.

Demographic Changes

Shifts in demographic factors like birth rates, death rates, education levels, religion, ethnicity, age, etc.

Labour Mobility

The ability of workers to move occupationally or geographically, within countries or internationally.

External Factors in HR Planning

Factors like technological change, government regulations, demographic change, social trends, economy, education, labour mobility, immigration, and work trends influencing HR planning.

Immigration

The international movement of people into countries where they are not citizens, seeking permanent residency.

Flexi-time

A flexible work schedule allowing workers to adjust starting and finishing times to meet other demands.

Gig Economy

An economy where organizations hire independent workers for short-term commitments.

Ethical Considerations in HR

Considerations like performance appraisal, right to privacy, lay-offs, restructuring, employment, discrimination, health and safety, and financial remuneration.

Cultural Differences

Differences in cultural expectations affecting business employees, including power distance, individualism, masculinity, uncertainty avoidance, and more.

Leadership

The process of motivating a group towards business goals, often considered an art involving inspiring, leading, and charming through charisma and qualities.

Autocratic Leadership

A leadership style where the manager makes decisions without input from others, providing clear lines of authority and quick decision-making.

Paternalistic Leadership

Leadership style treating employees like family, expecting loyalty and obedience while providing a sense of safety and fostering pride in the organization.

Democratic Leadership

Leadership style involving employees in decision-making, fostering trust, cooperation, and a sense of belonging, but may slow down decision-making.

Laissez-faire Leadership

Leadership style giving employees freedom to make decisions, fostering creativity and innovation but risking divergence from organizational goals.

Situational Leadership

Leadership adapting style to the situation, task, and people involved, matching leadership to circumstances but risking appearing unpredictable.

Ethical Considerations

Focus on doing the right thing with respect to people for leaders and with respect to the organization for managers.

Cultural Differences

Influence on leadership and management, including dimensions like power distance, individualism, and uncertainty avoidance.

Intrinsic Motivation

Motivation from the satisfaction of an activity without external rewards.

Extrinsic Motivation

Motivation derived from external factors like money in a business context.

Motivation Theories

Theories like Taylor's scientific management, Maslow's hierarchy of needs, Herzberg's two-factor theory, McClelland's acquired needs theory, and Deci and Ryan's self-determination theory.

Equity Theory and Expectancy Theory

Theories explaining motivation based on the balance between inputs and outputs, and the belief that efforts lead to good performance and rewards.

Labour Turnover

Percentage of employees leaving a company in a fixed period, indicating potential labor problems and affecting productivity and recruitment costs.

Internal Recruitment

Filling a position within an organization by recruiting from existing employees.

External Recruitment

Recruiting employees who are not currently part of the organization.

Identification Process

Involves job description, person specification, and deciding on internal or external recruitment.

Application Process

Includes job advert, application form or résumé, and internal or external agency.

Selection Process

Consists of shortlisting, testing, and interviews.

Induction

Introduction of new employees to the organization to help them succeed in their roles.

On-the-job Training

Training employees at their workplace during regular hours.

Off-the-job Training

Training employees offsite, typically paid for by the company and provided by external parties.

Appraisal

Reviewing employee performance, different from inspection, with a focus on constructive feedback.

Formative Appraisal

Ongoing assessment during work or training to improve performance.

Summative Appraisal

Formal evaluation at the end of a period to measure performance.

360-degree Feedback

Involves input from various sources like peers, customers, and supervisors for a comprehensive review.

Self-Appraisal

Employees evaluating their own performance as part of the evaluation process.

Financial Rewards

Monetary rewards like salary, wages, commission, and performance-related pay.

Salary

Fixed regular compensation paid to employees, usually monthly.

Wages (Time and Piece Rates)

Payment based on time worked or per unit produced.

Commission

Payment based on sales performance.

Performance-Related Pay

Compensation tied to individual, unit, or company performance.

Employee Share-Ownership Schemes

Involving shares in the company as a form of reward.

Fringe Payments

Non-salary compensation like life insurance or company car use.

Non-Financial Rewards

Rewards without precise monetary value, such as job enrichment or recognition.

Job Enrichment

Adding challenging tasks to enhance professional growth and motivation.

Job Rotation

Employees switching positions within the organization for training and skill development.

Empowerment

Giving employees resources and decision-making power to enhance motivation.

Purpose or Opportunity to Make a Difference

Connecting employees to organizational aims beyond profit for intrinsic motivation.

Teamwork

Collaborative work towards a common goal for increased motivation and performance.

Formal Communication

Official methods of communication in an organization.

Information Communication

Casual dissemination of information within an organization.

Barriers to Communication

Impediments preventing effective communication.

Conflict in the Workplace

Disputes between management and workers over various issues.

Collective Bargaining

Employees bargaining collectively with management, often in unionized settings.

Threats of redundancies

Management's warning to eliminate job positions if workers do not agree to terms in an industrial dispute, leading to potential job loss for those workers.

Changes of contract

Adjustments made to the existing contract between management and labor during collective bargaining, usually concerning pay, benefits, and work control.

Lockout

Management's action of closing off the workplace during negotiations, preventing workers from working and receiving pay.

Closure

The permanent or temporary shutdown of a site like a factory, plant, or office, governed by national laws with varying conditions and consequences.

Conciliation

Involves a third-party mediator suggesting ideas to help management and labor reach an agreement during a conflict.

Arbitration

Involves a third-party arbitrator with the authority to decide how the conflict between management and labor will be resolved.

Employee participation and industrial democracy

Situations where workers share decision-making responsibilities and authority in the workplace, impacting conflict resolution approaches.

No-strike agreement

A clause in a collective bargaining agreement where workers agree not to strike during the contract's duration in exchange for concessions from management.

Single-union agreement

Agreement where workers designate one union to represent their interests in the collective bargaining process.