Unit 2 keywords

Employee

An individual who is employed by the business exchanging work/labor for financial & non-financial rewards.

Motivation

The factors that influence the behaviour of workers towards achieving set business goals.

Labour productivity

A measure of how efficiently a country's labor force produces goods and services.

Absenteeism

Staying away from work without a valid reason.

Labour turnover

A rate of employees leaving the business.

Maslow’s hierarchy

A theory outlining different levels of human needs to motivate employees effectively.

Taylor’s theory

The view that people are only motivated by money.

Herzberg’s theory

Employee satisfaction is influenced by two sets of factors: hygiene factors and motivators.

Financial rewards

Monetary payments given to employees in return for their labour, often used to motivate.

Wage

Payment to an employee based on the number of working hours or outputs produced.

Salary

Fixed annual payment not based on hours worked or output.

Bonus

A sum of money paid to employees in addition to their salary.

Share ownership

The opportunity for employees to buy shares and become part owners in the business.

Commission

Payment to sales staff based on the value of the items they sell.

Profit sharing

An additional payment to workers based on the profits of the business.

Performance-related pay

An amount an employee earns based on job performance.

Non-financial rewards

Non-cash rewards given to motivate employees.

Job enrichment

Organising work to encourage workers to use their full abilities.

Job rotation

Increasing variety in the workplace by allowing task-switching among workers.

Teamworking

When a group of people work together to achieve a goal.

Job promotion

An employee advancement to a higher-level position with more authority and responsibility.

Organisational structure

The formal framework of a business showing its management and organisation.

Hierarchy

The number of levels in an organisational structure.

Span of control

The number of subordinates reporting to each supervisor/manager.

Chain of command

The route through which authority is passed down in an organisation.

Tall chart

A structure with many hierarchy layers resulting in a narrow span of control.

Short chart

A structure with few layers resulting in a wide span of control.

Directors

Senior managers responsible for day-to-day management of a company.

Managers

Individuals responsible for managing employees and team performance.

Supervisors

Junior managers who oversee employees in the organisational structure.

Delegation

Passing authority down through the organisational hierarchy.

Autocratic leadership

A leadership style where the leader makes all decisions.

Democratic leadership

A leadership style where workers participate in decision-making.

Laissez-faire leadership

A leadership style allowing employees to make decisions independently.

Trade unions

Organisations of workers aimed at improving pay and working conditions.

Internal recruitment

Filling a vacancy with someone already employed in the business.

External recruitment

Filling a vacancy with someone not already employed in the business.

Job description

A document explaining a worker's responsibilities.

Job specification

A document listing the skills and qualifications needed for a job.

Interview

A meeting to assess an applicant's suitability for a job role.

Part-time employees

Employees working less than full-time hours.

Full-time employees

Employees working more than 35 hours per week.

Training

The process of providing employees with necessary knowledge and skills.

Induction training

Initial training for new employees to introduce them to the organisation.

On-the-job training

Training where employees learn new skills while performing regular duties.

Off-the-job training

Training that takes place outside of the workplace.

Dismissal

Termination of employment by an employer against the employee's will.

Redundancy

When a job role is no longer needed and a worker is dismissed.

Retirement

When an employee leaves their job permanently, often due to age.

Automation

Use of technology to perform tasks without direct human intervention.

Discrimination

Treating one person or group less favorably based on protected characteristics.

Minimum wage

The lowest wage level set by the government that employers must pay.

Employment contract

An agreement outlining the terms of the employee-employer relationship.

Unfair dismissal

Dismissal without a valid reason or fair process.

Health and safety

Regulations to prevent workplace injuries or accidents.

Communication

Methods used to convey messages within an organisation.

Effective communication

Information being received and understood as intended.

Communication barriers

Obstacles hindering effective flow of information.

Information technology (IT)

Use of technological tools by businesses to manage data.

Internal communication

Communication between members of the same organisation.

External communication

Communication between the organisation and outside entities.