Unit 2 keywords

Employee 

An individual who is employed by the business. They exchange their work/labor for financial & non-financial rewards

Motivation 

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

Labour productivity 

a measure of how efficiently a country's labor force produces goods and services

Absenteeism

staying away/being absent from work without a valid reason

Labour turnover 

a rate of employees leaving the business

Maslow’s hierarchy 

A theory that outlines the different levels of human needs that must be met to motivate employees effectively, starting with basic physical needs and progressing to higher-level needs like self-esteem and self-actualisation.

Taylor’s theory

The view that people are only motivated by money

Herzberg’s theory 

Employee satisfaction and motivation are influenced by two sets of factors: hygiene factors and motivators

Financial rewards

Monetary rewards or payments given to employees in return for their labour and they are often used to motivate employees to increase their efforts

Wage 

A payment to employee based on the number of working hours or the number of outputs they produce, normally paid daily and weekly

Salary

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

Bonus

A sum of money paid to employees in addition to their salary

Share ownership: The opportunity an employee is given to buy shares to become part owners in the business.

Commision

payment to sales staff based on the value of the items they sell

Profit sharing 

an additional payment to workers based on the profits of the business

Performance-related pay: An amount an employee earns based on how well they are doing the job

Non-financial rewards

non-cash rewards given to employees in return for their labour and they are often used to motivate employees to increase their efforts

Job enrichment 

organising work so that workers are encouraged to use their full abilities

Job rotation 

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

Teamworking 

when a group of people work together to achieve a goal

Job promotion 

when an employee is given a higher position within a company/an advancement of an employee to a higher-level position by giving them more authority, more responsibility, and higher salary

Organisational structure 

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


Hierarchy 

The number of levels in an organisational structure.

Span of control 

The number of subordinates reporting to each supervisor/manager.

It can be described as wide or narrow.

Chain of command 

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

Tall chart

many layers of hierarchy so it has a longer chain of command, resulting in a narrow span of control

Short chart 

low layers of hierarchy so it has a shorter chain of command, resulting in a wide span of control by share

Directors

a senior manager who is responsible for the day-to-day management of a company

Managers

manage employees and are responsible for the team's development and performance.

Supervisors 

junior managers who supervise and are responsible for the employees below them in the organisational structure.

Delegation 

Passing authority down through the organisational hierarchy to a subordinate.

Autocratic leadership 

The leader makes all decisions

Democratic leadership 

Workers can take part in decision-making, but the leader will make the final decision

Laissez-faire leadership 

Employees are allowed to make decisions and solve problems on their own with little guidance from management

Trade unions 

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 employed in the business

External recruitment 

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

Job description 

A document that explains what the worker will do and their responsibilities.

Job specification 

A document that lists the skills and qualifications needed for the job.

Interview

A face-to-face or online meeting where an applicant/af candidate is questioned by a company representative to assess their suitability for a job role, evaluating their skills, experience, and personality to determine if they are the best fit for the position

Part-time employees 

an employee working for only part of the working week, or anything less than full time (40hrs)

Full-time employees 

an employee working more than 35 hours per week, often spread over five days each week


Training 

the process of providing employees with the necessary knowledge and skills to effectively perform their jobs

Induction training 

the initial training given to new employees when they start working for a business. It might include introducing them to the organization's culture, policies, procedures, and their specific job role and responsibilities

On-the-job training 

a method of training employees where they learn new skills and knowledge while performing their regular job duties

Off-the-job training 

a type of employee training that takes place outside of the workplace, like attending workshops, seminars, conferences, or online courses, where employees learn new skills or knowledge without being actively involved in their regular job duties at the time

Dismissal 

the termination of employment by an employer against the will of the employee, usually due to poor performance, misconduct or breaking company’s policies

Redundancy 

Resignation 

The result of when a job role that is no longer needed by a business and a worker is dismissed, usually with compensation

Retirement 

when an employee leaves their job permanently, mainly due to old age or other personal reasons

Automation 

the use of machinery and technology to perform tasks and processes without direct human intervention

Discrimination 

the act of treating one person or group less favorably than another, based on factors like race, gender, age, religion, disability, or other protected characteristics

Minimum wage 

the lowest amount of wage level, which is set by the government, that employers must pay their workers

Employment contract 

an agreement between an employer and an employee that outlines the terms and conditions of their working relationship. It might include the employee's working hours, expected work pattern and benefits they can get. 

Unfair dismissal 

When an employee is dismissed without a valid reason, or the employer didn't follow a fair process in dismissing them, potentially leading to legal action by the employee.

Health and safety 

the regulations and procedures put in place to prevent occupational or work-related injuries or accidents in a workplace or a public place

Communication 

the methods used to communicate a message. 

Effective communication 

the information or message being sent is received, understood and acted upon in the way intended

Communication barriers 

obstacles that hinder the clear and effective flow of information between individuals or departments within a company, potentially leading to misunderstandings, conflicts, and inefficiencies

Information technology IT

the use of computers, software, networks, and other technological tools by businesses to store, process, retrieve, and transmit data

Internal communication is where employees communicate with each other, e.g., in meetings about the business objectives and ideas about products. 

Internal Communication

Between members of the same organisations.

External Communication

Between the organisation and other organisations or individuals


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