Business Organization, HR, and Leadership: Key Concepts and Structures

delayering

reduction in the number of levels of hierarchy in an organizational structure

dismissal

occurs when an employer terminates an employee's contract

diversity

individual employees are unique in significant ways that should be understood

employee morale

the overall satisfaction and sense of well-being felt by employees

employee welfare

the wide range of factors essential for employees' general well-being

employment contract

a legal contract stating the terms and conditions of employment

equality

a state wherein all employees have the same workplace rights and opportunities

human resources (HR)

the personnel (people) of a business

human resource management

the acquisition, training, motivation, and rewarding of HR

labor mobility

measures how easily workers can relocate and change occupations

labor turnover

the percentage of a business's workforce that leaves over time

recruitment

process of identifying, attracting, vetting, and hiring the best candidate

redundancy

occurs when an employee is dismissed because their job no longer exists

workforce plan

identifies the number of workers and types of skills a business needs

work-life balance

the amount of time spent on work activities vs. non-work activities

authority

the power to control situations, decisions, or the actions of other workers

centralized

most decisions are made by senior managers or those at the top of a business

chain of command

the stated order of authority, illustrated by the organizational chart

decentralized

employees throughout the organization are empowered to make decisions

delegation

distributing work to another person (to maximize efficiency and effectiveness)

flat structure

few layers of people between the bottom and the top of the business

flexible structure

prioritizes employees' ability to adapt as needed over stated structure

formal structure

organized employees collectively work towards the business's objectives

functional structure

employees are organized into functional groups; allows specialization

hierarchical structure

employees have clearly defined relationships to other workers

informal structure

mostly independent professionals operate a business as a group

matrix structure

both task-oriented and based on specialized function

organizational structure

the way a business is arranged in order to carry out its activities

responsibility

the duty to complete a task and to be accountable for its completion

span of control

the number of people who report directly to a manager (wide vs. narrow)

tall structure

several layers of people separating the bottom of the business from the top

autocratic

style marked by centralized, top-down, 'authoritative' decision-making

controlling

setting standards, evaluating performance, and taking corrective action

democratic

style where business decisions are made with significant input from the staff

directing

overseeing and influencing the workers towards achievement of the objectives

emotional intelligence (EQ)

capacity to recognize emotions and handle relationships well

laissez-faire

style with little input from management; can be described as 'mild anarchy'

leadership

the process of motivating others to act in particular ways

management

strategically using resources to achieve business objectives

management functions

planning, organizing, directing, controlling

organizing

establishing structure and assembling the resources needed to fulfill objectives

paternalistic

style broadly autocratic, but the manager considers the interests of the team

planning

evaluating the business, setting strategic objectives, and plotting a course

situational

style where a manager uses whichever style is most useful in a given situation

transformational leadership

effective leader changes people's perceptions and behavior