Business key words UNIT 2:

Human Resource management

The strategic approach to the recruitment and management of employees to help a business achieve its objectives

Workforce Planning

Thinking ahead to establish the number of employees and the specific skills required for the future

Labour turnover

Measures the rate at which employees leave a business in one year as a proportion of the average workforce

Job Description

A document outlining the tasks, duties, and responsibilities involved in a specific job role

Person Specification

A document detailing the qualities, skills, and qualifications required in an ideal candidate for a job

Internal Recruitment

Filling a job vacancy by appointing an existing employee from within the organization

External Recruitment

Filling a job vacancy by appointing someone from outside the business to bring in new ideas or skills

Induction training

Training for new recruits to introduce them to the people, premises, and procedures of the firm

On the job training

Instruction at the place of work by watching or working with experienced members of staff

Off the job training

Instruction away from the place of work, often provided by specialist training centres or colleges

Employee Appraisal

The continuous process of assessing an employee's performance against pre-set targets or objectives

Dismissal.

Termination of employment due to an employee’s failure to meet standards or gross misconduct

Redundancy

Termination of employment because the job is no longer required, perhaps due to falling demand or new technology

Motivation

The inner desire of workers to complete a job quickly and well

Piece Rate

A payment system where workers are paid a fixed amount for each unit of output produced

Salary

A fixed annual amount of money paid to an employee, usually in monthly installments

Commission

A payment system where employees are paid a percentage of the value of the sales they achieve

Bonus

A sum of money paid to an employee in addition to their basic pay

Profit sharing

An arrangement where a portion of business profits is distributed to the workforce to increase commitment

Performance Related Pay

A bonus paid to employees who reach or exceed specific, pre-set targets

Fringe Benefits

Non-cash rewards provided to employees in addition to their salary, such as health insurance or company cars

Job Enrichment

Making a job more challenging by giving workers more responsibility and a meaningful unit of work

Job Rotation

Swapping workers between different tasks of the same difficulty level to reduce boredom

Empowerment

Giving employees authority to organize and manage their own work tasks

Hawthorne Effect

The conclusion that working in teams and managerial consultation improve productivity more than physical conditions

Maslow’s Hierarchy of Needs

Maslow’s theory that humans satisfy levels of needs in a specific order, from physical to self-actualization

Hygiene Factors

Herzberg’s factors (like pay and conditions) that can cause dissatisfaction if missing but do not motivate

Motivators

Herzberg’s factors (like achievement and responsibility) that provide job satisfaction and encourage effort

Paternalistic Management

A style where the manager acts like a parent to care for the interests of the workforce

Theory X

A management attitude assuming workers dislike work, avoid responsibility, and need close supervision

Theory Y

A management attitude assuming workers derive enjoyment from work and will accept responsibility