KEY TERMS ESP1

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

Manager

An individual who is in charge of a certain group of tasks, or a certain area or a department of a business

Chief Executive Officer (CEO)

The most senior manager responsible for the overall performance and success of a company

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

Organizing

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve goals

Leading

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve goals

Controlling

A management function that involves establishing clear standards, evaluating progress, rewarding good performance, and taking corrective action when needed

Coordinating

Bringing people and departments together to work towards the same aims and targets

Commanding

Guiding, leading, and supervising employees rather than just telling them what to do

Motivation

Factors that influence the behavior of workers towards achieving business goals

Job satisfaction

The enjoyment a worker gets from feeling that they have done a good job

Job rotation

Swapping workers round and only doing a specific task for a limited time before swapping round again

Job enlargement

Extra tasks added to the job to make it more interesting

Job enrichment

Adding tasks that require more skill and/or responsibility

Theory X

is a management theory developed by Douglas McGregor. It assumes that employees generally dislike work, avoid responsibility and need to be closely supervised, controlled and motivated through rewards or punishment.

Theory Y

is a management theory developed by Douglas McGregor. It assumes that employees are naturally motivated, enjoy working, seek responsibility and can exercise self-direction to achieve organizational goals.

Maslow's hierarchy of needs

A theory stating 5 categories of human needs dictate behavior: physiological, safety, love/belonging, esteem, and self

Physiological needs

Basic physical survival requirements such as air, food, water, clothing, and shelter

Safety needs

Protection, security, stability, order, and freedom from fear

Love and belonging needs

Social relationships, friendship, family, affection, and work groups

Esteem needs

Achievement, status, recognition, respect, reputation, and responsibility

Self-actualization needs

are the highest level of needs in Maslow's hierarchy of needs. They refer to an individual's desire to achieve their full potential, develop their abilities, pursue personal goals and become the best version of themselves.

Frederick Herzberg's motivation theory

Theory dividing needs into hygiene factors (prevent dissatisfaction) and motivators (promote satisfaction)

Hygiene factors

Basic workplace factors (pay, job security, working conditions, relations) that must be present to prevent job dissatisfaction

Motivators / Satisfiers

Intrinsic factors (challenging work, recognition, responsibility, advancement) that encourage employees to perform better

Knowledge worker

Skilled professionals (managers, programmers, engineers, scientists) whose main capital is knowledge

Labor relations

Interactions and relationships between employers, employees, and management

Job security

Knowing that there is little risk or chance of losing one's job

Wage

Money paid to manual or hourly workers for work performed

Incentive

An additional benefit, reward, or advantage offered to encourage specific behaviors or actions

Motivator

A factor or condition that encourages a person to act in a certain way

Promotion

Advancement to a higher rank, position, or job responsibility

Corporate culture

A company's shared values, attitudes, practices, and work relationships

Organizational structure

The levels of management and division of responsibilities within an organization

Hierarchy

The levels of management in an organization from highest to lowest level of responsibility

Chain of Command

The structure in an organization allowing instructions and information to pass down from senior management to lower levels

Span of Control

The number of subordinates working directly under a manager

Directors

Senior managers who lead a particular department or division of a business

Line managers

Managers having direct authority and responsibility for people below them in the hierarchy

Supervisors

Junior managers having direct control over non

Staff managers

Specialists who provide support, expert information, and assistance to line managers

Delegation

Giving a subordinate the authority and responsibility to perform a particular task

Decentralization

is the process of transferring decision-making authority and responsibility from top management to lower levels of management or employees within an organization

Line authority

The legal right or power to give direct instructions to subordinates down the chain of command

Matrix management

A structure where team members report to more than one supervisor or manager across departments

Glocalization

Developing and distributing products/services globally while adjusting them to accommodate local markets and cultural preferences

Culture

The complex system of values, traits, morals, and customs shared by a society

Context

The stimuli, environment, physical background, or ambience surrounding an event

The Lewis Model

is a framework developed by Richard D. Lewis that classifies cultures into three main types based on how people communicate, organize tasks and interact with others in business situations

High-context culture

is a culture in which people communicate indirectly, and much of the meaning is conveyed through context, body language, tone of voice, relationships and shared understanding rather than explicit words.

Low-context culture

is a culture in which people communicate directly and explicitly. Most of the meaning is conveyed through spoken or written words rather than body language, relationships or implied messages.

Power distance

The extent to which unequal distributions of power are accepted by less powerful members of a society

Universalist

Belief that rules, contracts, and regulations apply equally to everyone regardless of personal relationships

Particularist

Belief that personal relationships, friendships, and circumstances take precedence over strict rules and regulations

Individualist

A person or culture that values personal independence, individual rights, and personal achievements over group goals

Collectivist

A culture that emphasizes group cohesion, family, loyalty, and team goals over individual desire

Long-hours culture

where people expected to work long time each day

Macho culture

values typically associated with men

Sales culture

A workplace environment prioritizing sales volume and revenue generation above all other activities

Learning culture

An organizational environment that continuously encourages education, innovation, and self-study

intuition

the ability to understand or know something immediately without consciously reasoning or analyzing all the facts.

Recruitment

The entire process of discovering and attracting candidates from initial job identification up to receiving applications

Employee selection

The process of evaluating, interviewing, and choosing the most suitable candidate for a job position

Job analysis

The process of identifying and recording the duties, responsibilities, and tasks required for a specific job

Job description

A document outlining the duties, responsibilities, working conditions, and reporting relationships of a specific job

Job specification

A document outlining the required qualifications, skills, experience, and personal characteristics for a job applicant

Internal recruitment

Filling a job vacancy with an existing employee already working within the business

External recruitment

Filling a job vacancy with a candidate from outside the organization

Induction training

Introductory training given to new employees to familiarize them with company policies, safety rules, and colleagues

On-the-job training

is a method of training employees by allowing them to learn and develop skills while performing their actual job tasks in the workplace

Off-the-job-training

is a method of training employees away from their normal workplace, usually through courses, lectures, workshops or simulations conducted by external trainers or educational institutions

Shortlist (n)

A small group of selected candidates chosen from a larger pool to undergo final interviews

Shortlist (v)

To select a limited number of top candidates from a large applicant pool for further evaluation

Commission

Payment earned by an employee based on a percentage of the sales volume generated

Increments

Regular, periodic increases in an employee's wage or salary scale

Situation vacant

The recruitment or job vacancy advertisement section in newspapers or media

Primary sector

Industry involved in extracting and harvesting natural raw materials from the Earth (e.g., agriculture, mining)

Secondary sector

Industry involved in manufacturing, processing, and assembling raw materials into finished goods

Tertiary sector

Industry focused on providing services and commercial support to consumers and businesses (e.g., retail, banking)

Quaternary sector

Industry focused on knowledge

Mixed economy

An economic system containing both private business enterprises and state

Public sector

The part of the economy owned, funded, and controlled by government bodies or the state

Private sector

The part of the economy owned, managed, and controlled by private individuals and commercial companies

Privatization

The sale or transfer of state

Sole trader

A business owned, financed, and operated by a single individual who retains all profits

Limited liability

Legal protection limiting a shareholder's financial loss to the maximum amount they invested in the company

Unlimited liability

Legal responsibility requiring business owners to cover all debts personally using personal assets if necessary

Partnership

A form of business entity where two or more individuals jointly own, finance, and operate a enterprise

Shareholders

Individual or institutional owners of a limited company who hold shares representing equity ownership

Private limited company

A business owned by private shareholders whose shares cannot be traded on public stock exchanges

Public limited company

A large corporation owned by shareholders whose shares are freely traded on public stock exchanges

Shares

Equal units of ownership interest into which a business entity's capital stock is divided

Liability

The state of being legally responsible for debts, financial obligations, or damages

Prospectus

A legal document issued by a company providing financial details to prospective investors when offering shares

Creditor

An individual or institution to whom a business owes money for goods or services supplied

Production

The process of transforming inputs (land, labor, capital, materials) into finished, saleable output

Inventories

The total stock of raw materials, work-in-progress goods and finished goods

Lean production

Manufacturing methodology aimed at minimizing waste of resources, time, and materials while maximizing productivity

Job production

Manufacturing process where single, unique, custom

Batch production

Manufacturing method where groups of identical items pass through one production stage together before moving to the next