Business Studies: Chapter 7 Key Terms

autocratic leadership style

a leadership style that tends to make all the decisions, dictates work methods, limits worker knowledge about what needs to be done to the next step to be performed, frequently checks employee performance and sometimes gives feedback that is punitive.

behavioural approach

an approach that stresses that people (employees) should be the main focus of the way in which the business is organised

bureaucracy

the set of rules and regulations that control a business

chain of command

an organisational structure that shows how each member of a company reports to one another

classical approach

stresses how best to manage and organise workers so as to improve productivity (output)

contingency approach

stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances

control process

involves establishing standards in line with the goals of the business, measuring the performance of the business against those standards or benchmarks, and making changes where necessary to ensure that the goals of the business have been met

delegate

to hand over certain tasks or responsibilities to an employee who is suitably capable and qualified to carry them out

flatter organisational structures

have evolved due to a 'de-layering' of management structures resulting in the elimination of one or more management levels

leadership style

a manager's way of doing things — their behaviour and attitudes

management hierarchy

the arrangement that provides increasing authority at higher levels of the hierarchy

mass production

the process of manufacturing standardised goods on a huge scale by automation

operational (short-term) planning

provides specific details about the way in which the business will operate in the short term

organisation process

the range of activities that translate the goals of a business into reality

participative democratic leadership style

a leadership style in which the manager consults with employees to ask their suggestions and then seriously considers through suggestions when making decisions

planning

the preparation of a predetermined course of action for a business

scientific management

an approach that studies a job in great detail to discover the best way to perform it

specialisation of labour

the degree to which tasks are divided into separate jobs

strategic (long-term) planning

planning for the following three to five years. This level of planning will assist in determining where in the market the business wants to be, and what the business wants to achieve in relation to its competitors.

tactical (medium-term) planning

flexible, adaptable planning, usually over one to two years, that assists in implementing the strategic plan

teamwork

when people interact regularly and coordinate their work towards a common goal

time and motion studies

a process of examining each of the steps in a production procedure and the time taken to perform them