IGCSE Business people key terms

important

Motivation

The factors that influence the behaviour of workers towards achieving set business goals.

Labour productivity

A measure of the efficency of workers by calculating the output per worker.

Absenteeism

Workers' non-attendance at work without good reason.

Labour turnover

The rate at which workers leave a business.

The theory of the economic man

The view that humans are only motivated by money.

Piece-rate

Paying workers for each unit produced

Hygiene factors

The factors that must be present in the workplace to prevent job dissatisfaction.

Motivatiors

The factors that influence a person to increase their efforts.

Job dissatisfaction

How unhappy and discontent a person is with their job

Financial rewards

Cash and non-cash rewards paid to workers which are often used to motivate workers to increase their efforts.

Non-financial rewards

Methods used to motivate workers that do not involve giving any financial rewards.

Hourly wage rate

Payment to workers based on a fixed amount for each hour worked.

Salary

Fixed annual payment to certain grades and types of staff not based on hours worked on output.

Piece-rate

Payment to workers based on the number of units products

Commission

Payment to staff based on the value of the items they sell.

Bonus

An additional reward paid to workers for achieving targets set by managers.

Performance-related pay

A bonus scheme used to reward staff for performance to the required standard.

Fringe benefits

Non-cash rewards often used to recruit or retain workers and to recognise the status of certain employees.

Profit-sharing

An additional payment to workers based on the profits of the business.

Job rotation

Increasing variety in the workplace by allowing workers to switch from one task to another.

Job enlargement

Increasing or widening tasks to increase variety for workers.

Job enrichment

Organising work so that workers are encouraged to use their full abilities.

Job satisfaction

How happy and content a person is with their job.

Quality circles

Groups of workers who meet regularly to discuss work-related problems.

Team-working

Organising production so that groups of workers complete the whole unit of work.

Delegation

Passing responsibility to perform tasks to workers lower down in the organisation.

Organisational structure

The formal, internal, framework of a business that shows how it is managed and organised.

Functional departments

The main activities of business: finance, marketing, operations, human resources and research and development.

Hierarchy

The number of levels in an organisational structure

Chain of command

The route through which authority is passed down through an organisation.

Subordinate

An employee who is below another employee in the organisation's hierarchy.

Span of control

The number of subordinates reporting to each supervisor/manager

Delayering

Reducing the size of the hierarchy by removing one or more levels - most often middle management.

Centralised organisation

One where all the important decision-making power is held at Head Office, or the centre.

Decentralised organisation

One where the decision-making powers are passed down the organisation to lower levels.

Directors

Appointed or elected members of the Board of Directors of a company who have the responsibility for determining and implementing the company's policy

Annual General Meeting

A meeting for shareholders that limited companies must hold once every year.

Chief Executive Officer

The most senior manager responsible for overall performance and success of a company.

Manager

An individual who is in charge of a certain area or department of a business, for example the factory.

Supervisor

An individual who checks and controls the work of subordinates.

Autocratic leadership

A leadership style where the leader makes all the decisions

Democratic leadership

A leadership style where workers take part in decision-making

Laissez-faire leadership

A leadership style where most of the decisions are left to the workers.

Trade union

An organisation of workers aimed at improving pay and working conditions and providing other services, such as legal advice, for members.

Internal recruitment

Filling a vacant post with someone already in the business.

External recruitment

Filling a vacant post with somebody not already employed in the business.

Job description

A list of the key points about a job, job title, key duties, responsibility and accountability.

Person specification

A list of of the qualifications, skills, experience and personal qualities looked for in a successful applicant.

Shortlist

A list of candidates who are chosen from all of the applicants to be interviewed for the job.

Induction training

A training programme to help new recruits become familiar with their workplace, the people they work with and the procedures they need to follow.

On-the-job training

Training at the place of work. Watching or following an experienced worker.

Off-the-job training

Training that takes place away from the workplace, for example at college, university or specialist training provider's premises.

Resignation

termination of employment by the worker, perhaps because they have found a job with a different employer.

Retirement

Termination of employment due to the worker reaching an age beyond which they do not need to work.

Redundancy

Termination of employment by the employer because the job is no longer needed.

Dismissal

Termination by the employer because the worker has broken company rules or is not performing work to the required standard.

Communication media

The methods used to communicate a message

Feedback

The receiver's response to a message

Effective communication

Information passed between two or more people or groups, with feedback to confirm that the message has been received and understood.

Two-way communication

The receiver is allowed to respond to the message and the sender listens to the response.