CIE IGCSE Business Studies - Unit 2 - People in Business

Organisation

The structure of a business, often split into 4 departments covering the main areas of business

Line Managers

Responsible for overseeing the work that other staff do

Tall Organisations

Have many levels of hierarchy. The span of control is narrow and there are opportunities for promotion. Lines of communication are long, making the firm unresponsive to change.

Flat Organisations

Have few levels of hierarchy. Lines of communication are short, making the firm responsive to change. A wide span of control means that tasks must be delegated and managers can feel overstretched.

Induction

Introducing a person to a business so they can know how to do their job properly

On-the-job Training

Where staff with a lot of experience explain the job

Off-the-job Training

Outside experts are paid to explain the job

Monetary (financial) factors

Being offered more money

Non-monetary (non-(financial) factors

Being offered incentives such as promotion or holidays

Time Rate

Payed for number of hours worked

Performance Related Pay

Bonus for meeting a certain target within the job

Empowerment

Staff are given more authority

Maslow's Hierarchy of Needs

Suggests that only once the needs at the base of the pyramid are met can the next step be achieved

Taylorism (Taylor's Theory)

Suggests that staff do not enjoy work and can only be motivated by threats and money

Employment Rights

Laws set by the government to prevent the unfair treatment of workers e.g Discrimination Act and EU Working Time Directive

Health and Safety

Laws put in place to prevent staff from being hurt or becoming ill due to work. All businesses are required to have a Health and Safety poster and do a Risk Assessment

Vertical Communication

Messages sent to staff at a different level of hierachy

Horizontal Communication

Messages sent between staff on the same level of hierachy

Wage

Payment to workers, usually paid weekly.

Salary

Payment to workers, usually paid monthly.

Commission

Payment related to the number of sales made.

Profit Sharing

Proportion of the company's profits is paid out to employees.

Bonus

Additional amount of payment above the employees wage/salary.

Performance-related pay

Payment related to the effectiveness of the employee where their output is easily measured.

Motivation

The reason why employees want to work hard and effectively for the business.

Share Ownership

Where the shares in the company are given to employees so they become part owners in the company.

Appraisal

Is a method of assessing the effectiveness of an employee.

Fringe Benefits

Are non-financial rewards given to employees.

Job Satisfaction

It's enjoyment from feeling that you have done a good job.

Job Rotation

Workers swapping round and doing each specific task for a limited time.

Job Enlargement

Where extra tasks of a similar level of work are added to a worker's job description.

Job Enrichment

Adding tasks that require more skill and/or on responsibility.

Self-actualisation

Succeeding to your full potential.

Teamworking

Involves using groups of workers and allocating specific tasks and responsibilities

Training

Is the process of improving a worker's skills

Promotion

Is the advancement of an employee in an organisation,for example, to a higher job

Esteem needs

Having status, recognition and achievement

Social Needs

Friendship, sense of belonging

Safety/Security Needs

Protection against danger.

Physiological Needs

Food, rest, shelter.

Motivators

Achievement, Personal growth, Recognition

Hygiene Factors

Status, Work conditions

Piece Rate

Payment depending on the quantity of products made.

Organisational structure

Refers to the level 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 the highest to the lowest

Level of hierarchy

Refers to managers/supervisors/other employees who are given a similar level of responsibility in an organisation.

Directors

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

Supervisors

Are junior managers who have direct control over employees below them in the organisational chart

Chain of command

Structure in an organisation which allows instructions to be passed down from senior management to lower levels of management

Span of control

Number of subordinates working directly under a manager

Staff managers

Specialists who provide support, information and assistance to line managers

Line managers

Have direct responsibility over people below them in the hierarchy of an organisation

Delegation

Giving a subordinate the authority to perform particular tasks

Leadership styles

The different approaches to dealing with people when in a position of authority- autocratic, laissez-faire or democratic

Autocratic leadership

Where manager expects to be in charge of the business and to have their orders followed

Democratic leadership

Gets other employees involved in the decision-making process

Laissez-faire leadership

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

Trade union

Group of workers who have joined together to ensure their interests are protected

Closed shop

All employees must be a member of the same trade union

Recruitment

The process from identifying that the business needs to employ someone, to the point at which applications have arrived at the business.

Job (person) specification

A document which outlines the requirements, qualifications, expertise and physical characteristics for a specific job.

Internal recruitment

Is when a vacancy is filled by someone who is an existing employee of the business

External recruitment

Is when a vacancy is filled by someone who is not an existing employee of the business and will be new to the business.

Part time employee

A worker who works between 1-35 hours a week.

Full time employee

A worker who works 35+ hours a week.

Induction training

Is an introduction given to a new employee, explaining the business' activities, customs and procedures and introduces them to their fellow workers.

On-the-job training

Occurs by watching a more experienced worker doing the job.

Off-the-job training

Involves being trained away from the workplace, usually by specialist trainers.

Workforce planning

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

Redundancy

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

Dismissal

Is when employment is ended against the will of the employee, usually for not working in accordance with the employment contract

Ethical decision

A decision taken by a manager or a company because of the moral code observed by the business.

Industrial tribunal

A legal meeting which considers workers' complaints of unfair dismissal or discrimination at work.

Contract of employment

A legal agreement between employer and employee listing the rights and responsibilities of workers.

Communication

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

Communication barriers

Are factors that stop effective communication of messages e.g poor explanations, poor spelling and grammar, incorrect language, technology issues, poor structuring of information, use of jargon, technical language or slang, lack of understanding.

Message

Is the information or instructions being passed by the sender to the receiver.

Medium of communication

Is the method used to send a message

Internal Communication

Between members of the same organisation.

External Communication

Between the organisation and other organisations or individuals.

One way communication

A message that doesn't call for or require for a response.

Two way communication

When the receiver gives a response to the message and there isn't a discussion about it.

Formal communication

When messages are sent through established channels using professional language.

Informal communication

When information is sent and received casually with the use of everyday language.

Feedback

Is the reply from the receiver which shows whether the message has arrived, been understood and, if necessary, acted upon.

Verbal communication

One to one talks, meetings, telephone conversations, video conferencing.

Written Communication

Business letters, memos , notices and faxes.

Visual Communication

Films, videos, posters, chart diagrams, photographs and cartoons.

Planning

determining organisational goals and a means for achieving them

Organising

the process of arranging resources and tasks to achieve objectives

Coordinating

Means bringing together

Commanding

Guiding, leading and supervising people to make sure they are keeping to targets and deadlines.

Controlling

Determines to what extent the business is accomplishing the goals it set out to reach in the planning stage