Entrepreneurship, HRM, and Production Practice Flashcards

These vocabulary flashcards cover essential concepts from entrepreneurship, business growth, human resource management, motivation theories, leadership styles, and production/cost analysis based on the lecture notes.

Entrepreneur

An individual who uses factors of production to create goods or services for profit, identifies opportunities, starts and manages a business, and accepts financial and personal risks.

Business plan

A written document explaining the business’s objectives, strategies and financial forecasts, acting as a road map for starting, operating and growing the business.

Labour productivity

A measure of efficiency calculated using the formula: $\text{Units produced} \times \text{Number of employees}^{-1}$.

Internal or organic growth

When a business expands using its own resources, usually achieved by reinvesting profits, hiring staff, buying equipment or developing new products.

External growth

When a business grows by joining with or purchasing another business through a merger or takeover/acquisition.

Horizontal integration

The joining of businesses at the same production stage in the same industry to reduce competition and increase market share.

Backward vertical integration

When a business joins with a supplier to improve control of supplies and costs.

Forward vertical integration

When a business joins with a distributor or retailer to improve control of sales and distribution.

Conglomerate integration

The joining of businesses from unrelated industries to spread risk.

Labour turnover

The number of employees who leave the business each year, often calculated as a percentage of the total workforce.

Job description

A document that explains the job title, location, duties, responsibilities, working conditions, and reporting structure.

Person specification

A document explaining the ideal applicant's qualifications, experience, skills, training, and personal qualities.

Employment contract

A legally binding agreement between employer and employee covering job roles, hours, salary, leave, and notice periods.

Induction training

Training that introduces new employees to the business, its staff, and policies to improve integration and confidence.

On-the-job training

A method where an employee learns while doing the job, often with a mentor.

Off-the-job training

Training that takes place away from normal duties through courses, workshops, or online learning focused on specialist knowledge.

Intrinsic motivation

Motivation that comes from internal factors such as enjoyment, satisfaction, and self-improvement.

Extrinsic motivation

Motivation driven by external rewards such as pay, promotion, and recognition.

Taylor’s scientific management theory

A theory suggesting workers are mainly motivated by money, tasks should be specialized, and piece-rate pay should be used to reward higher output.

Maslow’s hierarchy of needs

A theory stating that lower-level needs (physiological, safety) must be met before higher-level needs (social, self-esteem, self-actualization) become motivators.

Herzberg’s two-factor theory

A theory distinguishing between hygiene factors (pay, security) that prevent dissatisfaction and motivators (recognition, responsibility) that increase satisfaction.

Total gross pay

The sum of employee earnings calculated as: $\text{Basic pay} + \text{Overtime pay}$.

Organizational structure

A system showing how a business arranges employees to achieve goals, including levels of authority, division of tasks, and lines of communication.

Chain of command

The route through which instructions pass within an organization.

Span of control

The number of employees directly supervised by a single manager.

Delayering

The removal of management levels to create a shorter chain of command and wider span of control.

Delegation

Transferring authority and responsibility to a subordinate while the manager remains accountable for the result.

Autocratic leadership

A style where the leader makes decisions with little employee input, suitable for crises or inexperienced workers.

Democratic leadership

A style where employees contribute ideas, but the leader makes the final decision, improving teamwork and motivation.

Laissez-faire leadership

A style where employees have freedom and little supervision, best used with highly skilled and independent experts.

Kaizen

A lean production concept meaning "change for the better," involving small, continuous improvements suggested by employees.

Just-in-time (JIT) production

A production method where materials arrive only when needed and goods are produced only when ordered, minimizing inventory.

Fixed costs

Costs that do not change with output in the short run, such as rent, insurance, and salaries.

Variable costs

Costs that change directly with output, such as raw materials and production wages.

Marginal cost

The cost of producing one additional unit, calculated as: $\Delta\text{Total cost} \times (\Delta\text{Output})^{-1}$.

Break-even output

The level of production where total revenue equals total cost, calculated as: $\text{Fixed costs} \times (\text{Selling price} - \text{Variable cost per unit})^{-1}$.

Margin of safety

The difference between current output and break-even output, showing how far sales can fall before a loss occurs.

Quality control

The process of inspecting and testing products during or after production to identify and remove defects.

Quality assurance

A system where quality is built into every production stage and all employees are responsible for preventing defects.

Total quality management (TQM)

A continuous improvement approach involving all employees to prevent mistakes and improve production processes.