BUSINESS IGCSE EDEXCEL UNIT 2 FLASHCARDS (copy)

IGCSE Edexcel Business Studies unit 2 - people in business

overdue

money that has not been paid by the time expected

communication channels

routes along which information might travel in a business

downward communication

passing messages from the top of the organisation to the bottom

upward communication

passing messages from the bottom of an organisation to the top

horizontal communication

exchange of information between parties on the same level in an organisation’s hierarchy

internal communication

communication between people inside the business

external communication

communication between the business and those outside

formal communication

use of recognised channels when communicating

informal communication

use of non-approved channels when communicating

effects of poor communication

1. mistakes occur

2. costs rise

3. decision making slows down

4. staff motivation suffers

advantages of face to face communication

1. allows immediate feedback

2. encourages cooperation

3. allows new ideas to be generated

4. saves time

disadvantages of face to face communication

1. negative body language

2. non-relevant information

3. some may not listen

4. limits to the number reached

types of written communication

1. letters

2. reports

3. memorandums

4. forms

5. noticeboards

types of electronic communication

1. email

2. internet

3. mobile phones

4. social media

5. intranets

6. videoconferencing

7. electronic noticeboards

barriers to communication

1. lack of clarity

2. technological breakdown

3. poor communication skills

4. jargon

5. distractions

6. business culture

7. long chain of command

8. different countries, languages, cultures

redeployment

moving someone or something to a different place or job

full time employment

employee is expected to work the full working week

part time employment

work fewer hours than full time employees

job share

two part time workers share the work and pay of a single full time job

casual employment

no guarantee of work from employers, variable work hours

seasonal employment

during peak periods, regular and full time but short lived

temporary employment

covering for absent workers

recruitment process

1. identify type and number of staff needed

2. prepare job description and specification

3. advertise using appropriate media

4. evaluate applicants and select shortlist

5. carry out interview

6. evaluate interview and appoint best candidate

7. provide feedback for unsuccessful applicants

job description

states title of job and outlines the tasks, duties and responsibilities associated

person specification

details of qualifications, skills, experience and any other characteristics expected of the appointed employee

curriculum vitae

contains most of the information given in a job application form but produced by the applicant and is personalised

internal recruitment

appointing workers from inside the business

external recruitment

appointing workers from outside the business

advantages of training

1. higher quality

2. better productivity

3. improved motivation

4. better employee retention

disadvantages of training

1. high cost

2. learning by doing

3. loss of output

4. employees leaving

legal controls over employment

1. gender

2. race and religion

3. disability

4. sexual preference

5. age

minimum wage

minimum amount per hour which most workers are entitled to be paid

arrears

money that you owe to someone or is owed to you

reasons for minimum wage

1. benefit disadvantaged workers

2. reduce poverty

3. help businesses

training

process that involves increasing the knowledge and skills of a worker to enable them to do their job more effectively

induction training

training given to new employees when they first start a job

on the job training

training that takes place while doing the job

advantages of on the job training

1. output produced

2. relevant

3. cheaper

4. easy to organise

disadvantages of on the job training

1. output may be lost

2. stressful

3. dangerous

4. staff frustration

off the job training

training that takes place away from the work area

advantages of off the job training

1. output not affected by mistakes

2. learning not distracted

3. outside work hours

4. no risk

disadvantages of off the job training

1. no output

2. expensive

3. some aspects cannot be taught

4. time taken to organise

job rotation

where employees alternate between different jobs during the course of their employment

importance of employee motivation

1. easier to attract employees

2. easier to retain employees

3. higher labour productivity

job satisfaction

pleasure, enjoyment or sense of achievement that employees get from their work

herzberg two factor theory

hygiene factors and motivators

hygiene factors

things at work that result in dissatisfaction

motivators

things at work than result in motivation

job enrichment

making a job more challenging and interesting

maslow’s hierarchy of needs

order of people’s needs starting with basic human needs

1. physiological needs

2. safety and security

3. love and belonging

4. esteem needs

5. self-actualisation

taylor’s theory of scientific management

workers were motivated by money

remuneration

money paid to employees for their work and services

time rate

payment system based on the amount of time employees spend at work

gross pay

pay before deductions

net pay

pay after deductions

overtime

rate of pay above the normal rate to compensate employees for working extra hours

salary

pay expressed as a yearly figure but paid monthly

piece rate

payment system where workers receive an amount of money for each unit produced

performance related pay

payment system where pay increases are given if performance targets are met

bonus systems

payment in addition to the basic wage for reaching targets or in recognition of service

commission

payment based on the value of sales

fringe benefits

perks over and above the normal wage or salary

autonomy

giving workers the authority to make decisions and choices about the way they work

formal organisation

internal structure of a business as shown by an organisation chart

organisational chart

diagram that shows the different job roles in a business and how they relate to each other

span of control

number of people a person is directly responsible for in a business

centralised

type of organisation system where most decisions are made at the top and passed down the chain of command

decentralised

type of organisation system where decision making is pushed down the chain of command

delegation

authority to pass down work