Business Studies iGCSE (CIE) Unit 2 - People In Business

Motivation

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