IB Business Management HL - Unit 2: HR | Quizlet

Outsourcing

A practice to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. A business cuts back on its operations to focus on its core activities. This way, it doesn't need to employ as many workers.

Recruitment

First stage of HR plan and can be split into three parts:

-identification

-application

-selection

Induction training

Training that focuses on making the new employee familiar with the way the business functions and with lines of authority.

On-the-job training

Employees are trained while they are doing their normal job. (E.g. Mentoring)

Off-the-job training

The employee is given time off rom work to attend training away from the job. (E.g. Workshop, conference, agencies, etc.)

Cognitive training

Training not focused on a particular aspect of the business, but rather it helps employees develop their thinking and processing skills.

Behavioral training

It helps an employee develop their inter-personal and infra-personal skills.

Appraisal

Third stage of the HR plan, which occurs when the performance of the employee is reviewed. Good systems:

- Are not directly linked to pay or promotion

- Are separate from disciplinary systems

- Require minimal paperwork

- Provide honest exchange of views

Formative appraisal

Relies on giving the employee feedback. It is typically run in a one-to-three-year cycle.

Summative appraisal

It makes a judgement of whether the employee passed or failed. It testes employees skills and knowledge.

360 degree appraisal

Each employee gets feedback not only from their line manager, but also from between four to eight co-workers, subordinates and even customers or clients.

Self-appraisal

The employee reflects on their own performance.

Termination

Employees leave the business at the end of their contract for reasons like change of career, professional development, promotion, retirement, etc.

Dismissal

The employee has broken one or more of the terms of their contract so he/she is fired.

Redundancy

The state of being no longer in employment because there is no more work available.

Full time

When employees work the maximum hours per week accepted by law.

Permanent contracts

An employee who has been hired for a position without a predetermined time limit.

Part-time

When employees work less than the full-time weekly maximum hours.

Temporary

Work that is on a fixed-term contract.

Teleworking

Work taking place from home or a telecommunication center.

Homeworking

Employee working from home.

Flexitime

Work involving a set number of hours on an employee's own choosing.

Communication

Exchange of information and ideas between people with the opportunity for feedback

Autocratic leadership

Leaders hold on to as much power and decision making as they can. They don't consult employees in deduction making, the orders are obeyed. This is used when employees are unskilled, not trusted, and their ideas are not valued.

Paternalistic leadership

The leader has considerable authority over employees, but unlike autocratic leadership, the leader sees his employees as "family". This leader often get total loyalty and even blind trust from employees.

Democratic leadership

Involves employees in decision making and informs them about issues that affect them, thought the leader has the final say. It's going to be more effective when applied with skilled, free-thinking and experienced subordinates.

Laissez-faire leadership

The manager gives his employees considerable freedom in how they do their work. Employees set their own goals, make their own decisions and resolve problems as they see fit. This is appropriated when employees can be trusted, are motivated, skilled and educated.

Situational leadership

This leadership is different depending on the situation, and not one style of leadership would be deemed to be the best. The skill of the workers or the nature of the circumstances will define which leadership style shall be used.

Intrinsic motivation

Someone gets satisfaction from the activity itself without taking account of the rewards and treats received for it.

Extrinsic motivation

Someone gets motivation from rewards and treats they receive for the job they do.

Taylor's scientific management theory

He broke down each process into its components and measured how much time it took to perform each task, then he assigned a worker/s to each step to save time and movement. Reward and punishment system.

Maslow's hierarchy of needs

Basic needs (food, warmth, shelter)

Safety needs (employment sources, morality, the family, health, property)

Love/belonging (friendship, family, sexual intimacy)

Esteem (self-esteem, confidence, achievement, respect of other and by others)

Self-actualisation (morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts)

Herzberg's 2-factor theory

Theory based on hygiene needs and motivational needs. Hygiene needs are those that create dissatisfaction if they are missing and motivational needs are those that add satisfaction if they are present.

Adams' equity theory

Based on inputs and outputs. Inputs are those affective-cognitive values that an employee brings to a business (attitude, effort, dedication, etc.) Outputs are what employee received in exchange.

Pink's drive theory

Autonomy, mastery and purpose motivate workers.

Offshoring

The process of basing some of a business' activities overseas in order to reduce costs.

Reshoring

The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.

Delegation

The process of passing tasks and decision-making power down the chain of command.

Span of control

The area of activity and number of functions, people, or things for which an individual or organisation is responsible.

Chain of command

A system in an organisation by which instructions are passed from one person to another.

Bureaucracy

Excessively complicated administrative procedure.

Centralization

Occurs when all decisions are made at senior management level.

Decentralization

Occurs when decision making is spread throughout the organisation and takes place at all levels of the hierarchy.

Delayering

Removing middle managers in order to shorten the chain of command and widen the span of control.

Hierarchy

A system in which members of an organisation or society are ranked according to relative status or authority.

Handy's Shamrock organisation

A symbolic representation of an organisation with 3 types of workers; core, flexible and contractual fringe.

Salary

A fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker. Herzberg suggested that this was the best method of financial reward.

Time-rate

A financial reward based on the number of hours worked.

Piece-rate

A financial reward based on output. Taylor suggested that this was the best method of financial reward.

Commission

A financial reward based on the amount of sales by the individual worker or team.

Profit-related pay

A financial reward where a worker receives a share of the firm's profits. Used to align employee and business objectives.

Performance-related pay

A financial reward whereby an employee receives a bonus based on the achievement of a pre-determined target.

Employee share ownership scheme

A financial reward where employees receive shares in a company. Used to align employee and business objectives.

Fringe payments

A financial reward that may take the form of cash, goods, or services, and may include such items as health insurance, pension plans, and paid vacations.

Job enrichment

A management concept that involves redesigning jobs so that they are more challenging to the employee and have less repetitive work.

Job rotation

The practice of moving employees between different tasks to promote experience and variety.

Job enlargement

Means increasing the scope of a job through extending the range of its job duties and responsibilities generally within the same level and periphery

Empowerment

The process of giving front-line employees the authority to make decisions once reserved only for managers.

Purpose

A person's sense of resolve or determination. One of Pink's Drive factors.

Autonomy

Freedom from external control or governance. One of Pink's Drive factors.

Mastery

Comprehensive knowledge or skill in a particular subject or activity. One of Pink's Drive factors.

Teamwork

The combined action of a group.

Organisational culture

A system of shared assumptions, values, and beliefs, which governs how people behave in organisations.

Collective bargaining

Negotiation of wages and other conditions of employment by an organised body of employees.

Go-slow

A form of industrial action in which work or progress is deliberately delayed.

Work-to-rule

Follow official working rules and hours exactly in order to reduce output and efficiency, especially as a form of industrial action.

Overtime ban

A form of industrial action where employees limit their working time to the hours specified in their contracts,.

Strike action

When a large number of workers stop working in protest.

Lockout

The exclusion of employees by their employer from their place of work until certain terms are agreed to.

Conciliation

The action of mediating between two disputing people or groups.

Arbitration

The use of an independent body or person to settle a dispute.

Industrial democracy

The involvement of employees in the running of an industry, factory, company, etc.

No strike agreement

A provision in a collective bargaining contract in which the union promises that during the life of the contract the employees will not engage in strikes, slowdowns, or other job actions.

Single union agreement

An agreement between an employer and a union such that the union will represent all the workers at a particular workplace.