Business Studies: Chapter 5-7 Key Terms

communication

the exchange of information between people; the sending and receiving of messages

controlling

the process of evaluating performance and taking corrective action to ensure that the set objectives are being achieved

decision making

the process of identifying the options available and then choosing a specific course of action to solve a specific problem

effectiveness

measures the degree to which a goal has been achieved

efficiency

compares the resources needed to achieve a goal (the costs) against what was actually achieved (the benefits)

flexible

being responsive to change and able to adjust to changing circumstances

interpersonal skills

those skills needed to work and communicate with other people and to understand their needs

leadership

the ability to influence people to set and achieve specific goals

leading

the process of influencing or motivating people to work towards the achievement of the organisation's objectives

management

the process of working with and through other people to achieve business goals in a changing environment. Crucial to this process is the effective and efficient use of limited resources.

manager

someone who coordinates the business's limited resources in order to achieve specific goals

nonverbal communication

any message that is not written or spoken

organising

the structuring of the organisation to translate plans and goals into action

proactive

refers to a management style that incorporates dynamic action and forward planning to achieve particular objectives

problem solving

a broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation

skill

the ability that comes from the knowledge, practice and talent to do something well

stakeholder engagement

refers to businesses sharing information with and seeking input from stakeholders, and involving them in decision making

strategic thinking

allows a manager to see the business as a whole and to take the broad, long-term view

traditional definition of management

the process of coordinating a business's resources to achieve its goals

triple bottom line

the economic, social and environmental performance of a business

vision

the clear, shared sense of direction that allows people to attain a common goal

benchmark

a standard by which something can be measured or judged

employee training

refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills

goal

a desired outcome (target) that an individual or business intends to achieve within a certain time frame

intrapreneur

an individual who takes on an entrepreneurial role within a business

labour productivity

measures how much an employee can produce in a set period of time

market share

refers to the business's share of the total industry sales for a particular product

mentor

someone — usually a more experienced employee — who helps develop a less experienced employee (the protégé)

mentoring

the process of developing another individual by offering tutoring and coaching, and modelling acceptable behaviour

motivation

the individual, internal process that directs, energises and sustains a person's behaviour

multiskilling

allows employees to develop skills in a wide range of tasks through ongoing training

profit maximisation

occurs when there is a maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out

promotion

the methods used by a business to inform, persuade and remind a market about its products

share

a part ownership of a public company

socialisation

the process a new employee undergoes in the first few weeks of employment through which he or she learns how to cope and succeed

social justice in business

is about adopting a set of policies to ensure that employees or other community members are treated equally and fairly

staff involvement

involving employees in the decision-making process and giving them the necessary skills and rewards

sustainable development

when the needs of the present population are met without endangering the ability of future generations to meet their own needs

autocratic leadership style

a manager using an autocratic leadership style tends to make all the decisions, dictates work methods, limits worker knowledge about what needs to be done to the next step to be performed, frequently checks employee performance and sometimes gives feedback that is punitive.

behavioural approach

an approach that stresses that people (employees) should be the main focus of the way in which the business is organised

bureaucracy

the set of rules and regulations that control a business

chain of command

an organisational structure that shows how each member of a company reports to one another

classical approach (to management)

stresses how best to manage and organise workers so as to improve productivity (output)

contingency approach

stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances

control process

involves establishing standards in line with the goals of the business, measuring the performance of the business against those standards or benchmarks, and making changes where necessary to ensure that the goals of the business have been met

delegate

to hand over certain tasks or responsibilities to an employee who is suitably capable and qualified to carry them out

flatter organisational structures

have evolved due to a 'de-layering' of management structures resulting in the elimination of one or more management levels

leadership style

a manager's way of doing things — their behaviour and attitudes

management hierarchy

the arrangement that provides increasing authority at higher levels of the hierarchy

mass production

the process of manufacturing standardised goods on a huge scale by automation

operational (short-term) planning

provides specific details about the way in which the business will operate in the short term

organisation process

the range of activities that translate the goals of a business into reality

participative democratic leadership style

a leadership style in which the manager consults with employees to ask their suggestions and then seriously considers through suggestions when making decisions

planning

the preparation of a predetermined course of action for a business

scientific management

an approach that studies a job in great detail to discover the best way to perform it

specialisation of labour

the degree to which tasks are divided into separate jobs

strategic (long-term) planning

planning for the following three to five years. This level of planning will assist in determining where in the market the business wants to be, and what the business wants to achieve in relation to its competitors.

tactical (medium-term) planning

flexible, adaptable planning, usually over one to two years, that assists in implementing the strategic plan

teamwork

when people interact regularly and coordinate their work towards a common goal

time and motion studies

a process of examining each of the steps in a production procedure and the time taken to perform them