business management chapter 2

democratic

leadership style that promotes active participation of workers in making decisions

intrinsic motivation

comes from satisfaction derived from working on and completing a task

summative appraisal

The goal of summative assessment is to measure the level of success or proficiency in meeting predetermined benchmark.

360-degree feedback

process whereby an employee receives feedback from all people with whom employee comes into contact with

project-based organisation

flexible organisational structure based on specific needs of a particular project or business venture

autocratic

style of leadership that keeps all decision-making at centre of organisation

extrinsic motivation

comes from external rewards associated with working on a task (pay and other benefits)

taylor theory

money: focuses on extrinsic factors to improve working productivity and efficiency (piece rate system) via Economic man

Maslow theory

lower order needs: physiological, safety and social needs (prevent dissatisfaction or unhappiness)
higher order needs: esteem and self-actualisation (genuine sense of complete)

herzberg theory

hygiene factors: extrinsic factors that surround the job itself
motivator factors: intrinsic factors, adopts principles of job enrichment

employee appraisal

the process of assessing the effectiveness of an employee judged against pre-set objectives

fringe payments

financial benefits of a job in excess of basic pay

job enrichment

aims to use full capabilities of workers by giving them opportunity to do more challenging things

job rotation

practice of moving employees between different tasks to promote experience and variety

off the job training

all training undertaken away from business, led by external specialists

workforce audit

a check on skills and qualifications of all existing employees

labour turnover

measures rate at which employees are leaving an organisation - the lower the better

descriptive statistics

range of supporting quantitative information and statistical data

occupational mobility of labour

extent to which workers are willing and able to move to different jobs requiring different skills

geographical mobility of labour

extent to which workers are willing and able to move geographical regions to take up new jobs

flexi-time

flexible work practice that enables economy to work a set number of core hours a week

gig economy

labour market characterised by widespread use of short term contract of freelance work rather than jobs with permanent contracts

delegation

passing authority down organisational hierachy - passing on control but holding accountable

span of control

how many workers are directly accountable to a particular line manager

levels of hierachy

stage of organisational structure at which personnel on it have equal status and authority

chain of command

formal lines of authority in an organisation

bureaucracy

organisation system with standardised procedures and rules

centralisation

situations in organisations where decision-making is predominantly made by a small group of senior managers at top of organisational hierachy

de-centralisation

decision-making power delegated throughout

delayering

organisation removes one or more layers in its hierarchical structure, reducing number of layers of management to make organisation flatter

matrix structure

flexible organisational structure based on specific needs of a particular business to meet changing needs of organisation

organisation by product

structuring workforce according to goods and services sold - specialisation and healthy internal competition, potential duplication of work

organisation by function

structuring workforce according to business functions - focus on 1 product or a small number of related goods and services

organisation by region

structuring workforce according to different geographical areas based on where firm's operations are

paternalistic

a type of fatherly/motherly style typically used by dominant leaders where their power is used to control and protect subordinate employees who are expected to be loyal and obedient

Laissez-faire

leadership style that leaves business decision-making to workforce

situational

effective leadership varies with task in hand and situational leaders adapt leadership styles

motivation

factors that stimulate people to take actions that lead to achievement of goal

formative appraisal

range of formal and informal assessment methods employed by supervisors not only to monitor employee's progress but also support and provide guidance

job enlargement

attempting to increase the scope of a job by broadening or deepening tasks undertaken

induction

introductory training programme to familiarise new recruits with business and layout

on the job training

instruction at place of work or how job should be carried out