OCR GCSE Business (9-1) UNIT 3 'People'

Human resources

means the workers employed by a business

Human Resources Function

Deals with human resources needs of the business, e.g. what types of workers and looks after the welfare of employees. (Sometimes known as the Personnel Department)

Human resource plan

details how many employees, whether they will be full or part-time, the skills they should have and when they will work.

Functions (departments)

different areas of activity within a business: production, finance, marketing and Human Resources.

Regulations

rules imposed on businesses by the government.

Organisation chart

diagram that shows how the workers are organised in a business and who is in charge of whom.

Layers

the number of levels of authority that there are in a chain of command.

Authority

the power that one person has to make decisions and to control what other workers do.

Accountability

the responsibility that a person has for a job. They will take the blame for what goes wrong and the credit for what goes well.

Chain of command

the links in the levels of authority from those at the top with the most authority to those at the bottom with the least.

Subordinates

the workers that a line manager is responsible for.

Span of control

the number of subordinates who report directly to the line manager.

Delegation

the process of a manager giving authority to a subordinate to make decisions. The manager is still accountable.

Flexible working

working partly at their place of work and partly elsewhere, perhaps at home or while they are mobile. Flexible hours means they can work e.g. 8 hours within 7am to 7pm.

Full-time working

employee works 35 hours or more per week.

Part-time working

employee works fewer than 35 hours per week.

Temporary working

employee works for a short period of time for an employer, sometimes on a short-term contract or seasonally.

Working while mobile

people work when they are on the move, e.g. travelling to a meeting.

Self-employment

people work in their own business, selling their services to buyers who may be consumers or other businesses.

Zero-hours contracts

given to employees which do not guarantee any work. The business will call workers if and when they are needed and ask them to come in to work.

Communication

the transmission of a message from a sender to a receiver

Digital communication

the exchange of information electronically using ICT.

Written communication

written words and diagrams - text, email, letters.

Feedback

response made by a person who receives a communication that indicates that they have, or have not, understood the communication.

Internal communication

communication between people employed in the same organisation.

Vertical communication

communication up or down the hierarchy within an organisation.

Horizontal communication

communication between people on the same level of the hierarchy in an organisation.

External communication

communication between a person in an organisation and another person outside that organisation.

Formal communication

communication that uses the official channels of communication within an organisation, e.g. a meeting.

Informal communication

communication that is outside the official channels of communication within an organisation, e.g. whilst having a coffee in the canteen.

Verbal communication

communication by speaking - in meetings, by telephone, the use of video-conferencing.

Social media

online applications that allow people to create and share content to participate in social networking.

Website

online location with several pages that can be viewed by internet users through its site address.

Selection

the process of choosing between applicants for a job.

Job description

lists the main duties and responsibilities of the worker.

Person specification

lists the qualities, qualifications and knowledge that a person should have to do a particular job.

Internal recruitment

a job vacancy is filled by employing someone who is already an employee of the business.

External recruitment

when a job vacancy is filled by employing someone from outside the business.

Recruitment agency

carries out all the tasks involved in recruitment and selection of workers on behalf of an organisation.

Employment agency

has workers readily available for business hire, usually for a short period of time.

Skills gap

the business is short of workers of a particular type / ability.

Skills shortage

the businesses cannot recruit workers with the skills they need, so may have to train them.

Internal methods of recruitment

include notice boards, word of mouth, company website and emails to staff.

External methods of recruitment

include websites, newspapers, social media and specialist magazines.

CV

a document on which the applicant outlines their personal details, experience and skills.

Application form

a form created by the business which asks applicants to complete personal details, experience and skills in a standard format.

Letter of application

written by the applicant, explaining why they think they are suitable for the job.

Interviews

method of selection in which the people making the appointment ask questions of the applicants.

Tests

activities completed by applicants which check their skills.

Group activities

designed to test how well an applicant works with others.

References

statements from a previous employer about the suitability of the applicant for the job.

Motivation

how workers are encouraged to work hard and to work efficiently through pay and non-pay rewards.

Retention of workers

workers choose to stay in a firm rather than change to a new company.

Turnover of labour

a measure of the number of staff who leave a firm each year and need replacing.

Productivity

a measure of output per worker (measures performance of workers and business).

Pay

money earned by workers as a reward for the work they do.

Profit sharing

workers receive some of the profits made by a business.

Bonus

additional payment to workers for achieving a target.

Fringe benefits

benefits that workers receive in addition to their pay, e.g. pensions, childcare vouchers, subsidised canteen meals.

Praise

method of motivating a worker by complimenting their work and so making their work recognised and valued.

Award scheme

certificates or presentation of some kind to recognise somebody's effort.

Working environment

the quality of the physical workplace and its climate.

Training

activities to help a worker to do his or her job well. Short term and focused on job specific skills.

Professional development

vocational and academic activities to help a worker realise their potential in the long term, e.g. external courses reinforced by practical activity in the workplace. Often leads to qualifications.

On-the-job training

occurs at the place of work and while the worker is doing their job.

Off-the-job training

occurs away from the job. It may still be at the place of work, or the employee may be sent somewhere else for the training.

Induction training

introduce a new worker to the business, place of work and their fellow workers as well as their job.

Apprenticeship

long-term programme to train junior workers to learn job skills while they work through a mixture of on and off-the-job training and study. Lead to some kind of vocational qualification.

Customer service

given to customers before, at the time of sale and after the sale.

Employment law

created to protect workers from employers who may treat them unfairly.

Discrimination

one worker is treated differently from another for no acceptable reason.

Working time directive

statement of the maximum number of hours that a person can be asked to work.

Holiday entitlement

amount of paid holiday that a worker can have in a year.

Employment tribunal

panel that hears cases where employment laws may have been broken and which comes to a decision either in favour of the employer or employee.

Trade union

an employee organisation that exists to represent the interests of its members.

Contract of employment

a legal agreement between an employer and an employee.

Statement of employment particulars

part of the employment contract. It gives details of the terms of employment.