2. People in Business

business terms

Motivation

is the reason why employees want to work hard and effectively for a business

Wage

is a payment for work, usually paid weekly

Time rate

is the amount paid to an employee for one hour of work

Piece rate

is the amount paid for each unit of output

Salary

is payment for work, usually paid monthly

Bonus

is an additional amount of payment above the basic pay as a reward for good work

Comission

is a payment relating to the number of sales made

Profit sharing

is a system where a proportion of the company’s profits are paid out to employees

Job satisfaction

is the enjoyment made from feeling that you have done a good job

Job rotation

is when workers swap around and do each specific task for only a limited time and then changing around again

Job enrichment

involves looking at jobs and adding tasks that require more and/ or responsability

Team-working

involves using groups of workers and allocating specific tasks and responsabilities to them

Training

is the process of improving a workers skill

Promotion

is the advancement of an employee in an organisation.

For example: to a higher job or managerial level

Organisational Structure

refers to the levels of management and division of responsibilities within an organisation

Organisational chart

refers to a diagram that outlines the internal management structure

Hierarchy

refers to the levels of management in any organisation, from highest to lowest

Level of hierarchy

refers to:

1. managers

2. supervisors

3. other employees

who are given a similar level of responsability in an organisation

Chain of command

is the structure in an organisation which allows instruction to be passed down from senior management to lower levels of management

Span of control

is the number of subordinates working directly under a manager

Directors

are senior managers who lead a particular department or a division of a business

Line managers

have direct responsibility for people below them in the hierarch of an organsiation

Supervisors

are junior managers who have direct control over employees below them in organisational structure

Staff managers

are specialists who provide support, information and assistance to line managers

Delegation

means giving a subordinate the authority to perform particular tasks

Leadership styles

are the different approaches to dealing with people and making decisions when in apposition of authority.

• Autocratic

• democratic

  laissez-faire

Autocratic leadership

is where manager expects to be in charge of business and to have their orders followed

Democratic leadership

gets other employees involved in decision making process

Laissez-faire leadership

makes broad objectives of business known to employees, but then they are left to make their own decisions and organise their own work

Recruitemnt

is the process of identifying that the business needs to employ someone up to the point at which applicant have arrived at the business

Job analysis

identifies and records the responsibilities and tasks relating to a job

Job description

outlines responsibilities and duties to be carried out by someone employed to do a specific job

Job specification

is a document which outlines requirements, qualifications, expertise, physical characteristics, etc. for a specified job

Internal recruitment

when vacancy is filled by someone already existing as an employee of the business

External recuritment

when vacancy filled by someone who is not an existing employee and will be new to business

Induction training

is an intro given to a new employee, explaining businesses activities, customs and procedures and introducing them to their fellow workers

On-the-job training

occurs by watching a more experienced worker doing their job

Off-the-job training

involves being trained away from workplace, usually by a specialist trainer

workforce planning

is the analyzing the workforce needed by business for foreseeable future in terms of number and skills of employees required

Dismissal

is when employment is ended against will of employee, usually for not working according to employment contract

Redundancy

is when the employee is no longer needed and so loses their job. It is not due to any aspect of their work being unsatisfactory

Control of employment

is a legal agreement between an employer and an employee, listing the rights and responsibilities of workers

Communication

is the transferring of a message from sender to receiver, who understands the message

A message

is info or instructions being passed by sender to receiver

Internal communication

is communication between members of same organisation

External communication

is communication between the organisation and other organisations or individuals

Transmitter or Sender of message

is person starting off process by sending the message

medium of communication

method used to send a message

For example:

• a letter is a method of written communication

• a meeting is a method of verbal communication

Receiver

is person who receives the message

Feedback

is reply from receiver which shows the message had arrived, been understood and if necessary acted upon

One-way communication

is when message which doesn’t require a response

Two-way communication

is when receiver gives a response to message and ther’s a discussion bout it

Formal communication

is when messages are sent through established channels using professional language.

Informal communication

is when info is sent and received casually using everyday language

Communication barriers

are factors that stop effective communication of messages