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Textbook terms for Business Studies iGCSE (CIE) for unit 2 - Human Resources
Motivation
The factors that influence the behaviour of workers towards achieving set business goals.
Labour productivity
A measure of the efficiency of employees by calculating the output per employee.
Absenteeism
Employee’s non-attendance at work without good reason
Labour turnover
The rate at which employees leave a business
The theory of economic man
The view that humans are only motivated by money
Hygiene factors
The factors that must be present in the workplace to prevent job dissatisfaction.
Motivators
The factors that influence a person to increase their efforts
Job Dissatisfaction
How unhappy and discontent a person is with their job.
Financial rewards
Cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts.
Non-financial rewards
Methods used to motivate workers that do not involve getting any financial reward
Hourly wage rate
Payment to workers based on a fixed amount for each hour worked.
Salary
Fixed annual payment to certain grades and types of staff not based on hours worked or output.
Piece-rate
Payment to workers based on the number of units produced
Commission
Payment to sales staff based on the value of items they sell
Bonus
An additional reward paid to workers for achieving targets set by managers.
Performance-related pay
A bonus scheme is used to reward staff for performing to the required standard
Fringe benefits
Non-cash rewards often used to recruit or retain workers and to recognize the status of certain employees
Profit-sharing
An additional payment to workers based on the profits of the business
Job rotation
Increasing variety in the workplace by allowing workers to switch from one task to another
Job enlargement
Increasing or widening tasks to increase variety for workers
Job enrichment
Organising work so that workers are encouraged to use their full abilities
Job satisfaction
How happy and content a person is with their job
Quality circles
Groups of employees who meet regularly to discuss work-related problems
Team working
Organising production so that groups of employees completw the whole unit of work.
Delegation
Passing responsibility to perform tasks to employees lower down in the organisation.
Organisational structure
The formal, internal framework of a business that shows how it is managed and organised
Functional departments
The main activities of a business: finance, marketing, operations, human resources and research and development.
Hierarchy
The number of levels in an organizational structure
Chain of command
The route through which authority is passed down in an organization
Subordinate
An employee who is below another employee in an organisation’s hierarchy
Span of control
The number of subordinates reporting to each supervisor/manager
Delayering
Reducing the size of the hierarchy by removing one or more levels - most likely middle management
Centralised organisation
One where all the decision-making power is held at head-office, or the centre
Decentralised organisation
One where the decision-making powers are passed down the organisation to lower levels.
Directors
Appointed or elected members of the Board of Directors of a company who have the responsibility for determining and implementing the company’s policy. Some directors might also have a management role (e.g marketing director)
CEO
The most senior manager responsible for the overall performance and success of a company
Annual General Meeting (AGM)
A meeting for shareholders that limited companies must hold every year.
Manager
An individual who is in charge of a certain group of tasks, or a certain area or department of a business (e.g. factory manager)
Supervisor
An individual who checks and controls the work of subordinates
Planning
Planning is about looking at where the business is now and where it wants to be in the future. Once this has been decided, managers must then set clear objectives and decide on the actions needed for these to be achieved.
Organising
This function of management is about preparing and organising the resources needed to achieve the planned goals and objectives. Managers will have to decide the best way of completing important tasks at the lowest possible cost to the business.
Commanding
This function involves the control and supervision of subordinates. Commanding should also aim to motivate employees towards achieving the planned objectives.
Coordinating
Coordinating is making sure that all of the different parts of the business are working together towards achieving the business’s goals and corporate objectives.
Controlling
This final function of management involves checking to make sure that the plan is working. Will it be completed on time and to the required standard? If not then action must be taken to correct it.
Autocratic leadership
A leadership style where the leader makes all the decisions
Democratic leadership
A leadership style where employees take part in decision-making
Laissez-faire leadership
A leadership style where most of the decisions are left to the employees
Trade Union
An organisation of employees aimed at improving pay and working conditions and providing other services, such as legal advice, for members
Internal recruitment
Filling a vacant post with someone already employed in the business.
External recruitment
Filling a vacant post with somebody not already employed in the business.
Job description
A list of the key points about a job, job title, key duties, responsibilities and accountability
Person specification
A list of the qualifications, skills, experience and personal qualities looked for in a successful applicant
Shortlist
A list of candidates who are chosen from all of the applicants to be interviewed for the job
Induction training
A training programme to help new recruits become familiar with their workplace, the people they work with and the procedures they need to follow.
On-the-job training
Training at the place of work; watching or following an experienced employee
Off-the-job training
Training that takes place away from the workplace (e.g at college, university or specialist training premises)
Resignation
Termination of employment by the employee, perhaps because they have found a job with a different employer
Retirement
Termination of employment due to an employee reaching an age beyond which they do not need to work.
Redundancy
Termination of employment by the employer because the job is no longer needed
Dismissal
Termination by the employer because the employee has broken company rules or is not performing work to the required standard.
Communication media
The methods used to communicate a message
Feedback
The receiver’s response to a message
Note 
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