production is divided into separate tasks and each employee does just one of those tasks
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de-industrialisation
decline in the importance of secondary, manufacturing industry
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horizontal integration
the business integrates with another in the same industry and same stage of production
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vertical integration
the business integrates with another in the same industry but different stage of production
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backwards vertical integration
towards supplier
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forward vertical integration
towards market/customer
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conglomerate integration
the business integrates with another in a different industry and different stage of production
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business plan
a document containing the business objectives and important details about the operations, finance and owners
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entrepreneur advantages
independence
uses own ideas
could be profitable
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entrepreneur disadvantages
business could fail
opportunity cost
lack of experience
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taylor’s scientific management: advantages
production is more efficient because of more motivation, money
increase productivity
jobs are made into simple steps
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taylor’s scientific management: disadvantages
work is boring and repetitive
low quality goods because of fast production
no stable income
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hygiene and motivator factors; advantages
clean and safe environment
opportunity for promotion
workers are happy and satisfied
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hygiene and motivator factors; disadvantages
more competition among workers
too many policies
conflict may arise
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hierarchy
refers to the management levels within an organisation
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delegation
giving subordinates the authority to perform particular tasks
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delegation advantages
employee’s experience and skill will increase
more promotions
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delegation disadvantages
the manager is to blame if a mistake happens or work is not completed
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span of control
measures the number of subordinates reporting directly to a manager
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narrow span of control
many levels of management
managers are responsible for few employees
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wide span of control
few level of managment
managers are responsible for many employees
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wide advantages
faster communication and decision making
less expensive
increase worker motivation
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wide disadvantages
reduced promotion opportunities
less control over subordinates work
effective communication may be difficult
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narrow advantages
effective communication is easier
better control over workers and work
increased promotion opportunities
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narrow disadvantages
communication and decision making is slower
more expensive
more supervision reduces worker motivation
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autocratic
manager has total control and there is no delegation. communication is one way. this style is used when employees are unskilled or not trusted
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autocratic advantages
quick in decision making
manager always feels in control
employees have clear direction
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autocratic disadvantages
motivation low as employees don’t feel involved
employees too dependent on manager
undeveloped skills for employees
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democratic
manager is good at communicating and willing to delegate. employees are skilled and experienced. final decision made by manager after discussion
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democratic advantages
employees are motivated as they are listened to
loyalty increases due to responsibility given to employees
managers feel that decisions are supported by employees
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democratic disadvantages
decision making can be slow
problems can occur due to lack of knowledge from employees
conflict if views differ
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laissez-faire
managers have little influence in the actions of employees and only involved to resolve disagreements. good for small, highly motivated teams
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laissez-faire advantages
high motivation as employees are free to do what they want
all skills used for the benefit of the business
loyalty increases due to responsibility given to employees
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laissez-faire disadvantages
no real direction
poor coordination which leads to inefficiency
conflict may arise
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motivation
the factor that makes people want to do something for job satisfaction
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salary
employees are paid a fixed amount per year, which is usually paid monthly
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time rate
employees are paid a set amount for each hour worked
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piece rate
employees are paid by the amount of output they produce
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fringe benefits
non-financial rewards/incentives given in addition to wages
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bonus
employees receive extra money above basic pay if they reach certain performance targets
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commission
salesperson are given an incentive to sell more as they receive a percentage of any sales made
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profit sharing
additional payments are given based on the level of business profits
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share ownership
in limited companies, employees have a chance to buy shares to become part owners in the business, they receive dividends
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job enrichment
the employees are given more responsibility or more difficult tasks to do
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job satisfaction
enjoyment employees can derive from work if they feel that they have done a good job
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job enlargement
tasks of a similar level of difficulty/responsibility are added to a workers job description
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dividends
payments made to shareholders from the profits of a company
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franchise
a business that uses, under licence, the brand name, logo and trading methods of an existing business. the franchisor sells the licence; the franchisee buys the licence
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joint venture
two or more businesses start a new project together sharing capital, risks and profits
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public corporation
a business in the public sector, that is owner and controlled by the government
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business objectives
the aims or targets that a business works towards
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profit
total income of a business minus total costs
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market share
the proportion of total market sales held by one brand or business
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market share formula
sales of business/total market sales × 100
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social enterprise
an organisation with profit, environmental and social objectives
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stakeholders
any person or group with a direct interest in the performance and activities of business
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organisational structure
the levels of management and divisions of responsibility in an organisation
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chain of command
the route taken by instructions passed down from senior management
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level of hierarchy
a level of management where people have the same level of responsibility
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line managers
have direct responsibility over people below them in the hierarchy of an organisation
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staff managers
specialists who provide support, information and assistance to the managers
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trade union
a group of workers who join together to protect their interests
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recruitment
identifying need for new employees and encouraging people to apply for a vacancy
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job description
responsibilities and duties to be carried out by job holder
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on the job training
training at the place of work, watching and being instructed by experienced workers
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off the job training
training away from the place of work. e.g at college, being instructed by specialists or trainers
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induction training
training for new employees explaining the business structure, activities and procedures
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redundancy
employees are no longer required
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dismissal
an employee’s employment contract is terminated and they must leave the business
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communication
sending a message from sender to receiver who understands it
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message
information or instructions sent from sender and receivers
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internal communication
communication between members of the same organisation
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external communication
communication between one organisation and another organisation
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sender
the person sending the message
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receiver
the person who receives the message
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feedback
reply from receiver to sender to confirm message received/understood
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method of communication
how the message is communicated
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one-way communication
message is sent without receiver required or expected to give feedback
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two-way communication
gives feedback to a received message and there may be discussion about it
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formal communication
messages sent through established channels
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communication barriers
factors that stop effective communication
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marketing
anticipating the needs and wants of targeted customers and managing the process through which these needs and wants are satisfied
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role of marketing
identifying and satisfying customer needs
maintaining customer loyalty
building customer relationships
gain information on customers
anticipate changes in customer needs
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market
a place where buyers and sellers come together to buy and sell goods and services
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niche market
a small and specific part of a larger market
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mass market
a market for products that are often standardised and sold in large quantities
Studied by 83 people
