Business Unit 2 – Flashcards

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Absenteeism
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measures the percentage of the workforce not present at work in a given period of time. A high level of absenteeism is a possible sign that there are low levels of motivation and job satisfaction
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Content theories
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explain the actual factors that motivate people, i.e. what motivates workers. Herzberg, for example, looked at hygiene factors and motivators, whilst McClelland studied the need for achievement, affiliation and power
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Delegation
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refers to managers passing on tasks or responsibilities tot their subordinates. This can motivate workers who wish to be entrusted with assigned tasks and recognized for their abilities
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Empowerment
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a form of non-financial motivator which involves a line manager giving his or her subordinates some automny in their job and the authority to make various decisions
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Fringe benefits
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benefits recieved in addition to a worker's wages or salaries, such as free uniforms, subsidized meals, housing benefit, pension fund contributions and company cars
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Herzbegs two factor theory
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the factors that motivate employees, namely motivators and maintenance (hygiene) factors
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Hygiene factors
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parts of a job that Herzberg reffered to that do not increase job satisfaction but help to remove dissatisfaction, such as reasonable wages and working conditions
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Mayo's hawthorne effect
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(experiments found that workers are most motivated and productive when they are able to have some social interaction with their fellow workers when management take an interest in their well being. This philosophy formed the basis of the human relatons management school of thought on motivation
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Motivators
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factors that Herzberg considered to increase job satisfaction and motivation levels, such as praise, recognition and responsibility
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Job enlargement
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refers to the increasing number of tasks that an employee performs, thereby reducig or eliminating the monotomy of repetitive tasks
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Job rotation
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another form of job enlargement that entails giving workers a number of different tasks at the same level of complexity in a perscribed order. This helps to reduce the problems caused by performing repetitive tasks
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Maslow's hierarchy of needs
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a motivatio theory tha outlines the five levels of needs, from the requirement to satisfy basic physiological needs through to self-actualization. Maslow argued that until a lower order need is met, people cannot progress onto the next level of needs.
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Maslow's Theory X and Theory Y
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theory based on management perceptions of worker attitiudes in the workplace
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Motivation
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the inner desire or passion to do something
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Performance-related pay
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a payment system that rewards people who meet set targets over a period of time. The targets can be on an individual, team or organizational basis
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Piece rate
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payment system that rewards employees based on the amount that he or she produces or sells. Pay is therefore directly linked to the productivity level of staff, such as sales people
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Process theories
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look at why people behave in a certain matter and how motivation can be maintained or stimulated. These theories look at what people think about when deciding wether or not to put in the full effort to complete a task
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Productivity
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measures the level of output per worker. It is a measure of motivation because employees tend to be more productiv with increased levels of motivation
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Remuneration
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means the overall package of pay and benefits offered to an employee
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Scientific management
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was developed by F.W. Taylor wjo believed that specialization and divison of labour would generate greater levels of productivity. Taylor introduced a piece-rate payment system to link pay with productivity levels
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Theory X
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MacGgregor's term for describing managers that oercieve their employees in a pessimistic way, i.e. subordinates need constant supervision, prefer to be told what to do, avoid work if they can, and do not seek any respnsibility
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Theory Y
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optimistic management stance towards worker attitudes, as described by MacGregor. Theory Y managers believe that employees do have initiative, want praise and recognition for their achievements, and like taking on responsibility at work
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Time rate
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a payment system that rewards employees for the time that they out into work. Payment is expressed per period of time, e.g. $10 per hour or $5000 per month
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Job enlargement
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refers to increasing the number of tasks that an employee performs, thereby reducing or eliminating the monotony of repetitive tasks
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Autocratic
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managers and leaders that adopt an authoritarian sttle by making all the decisions rather than delegating any responsibility to their subordinates. Instead, the aurocratic simply tells others what to do
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Contingency theory
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a leadership model based on the belief that the 'best' leadership style for a business depends on a range of interconnected factors, such as the size, skills and abilities of the workforce. There is no single style that suits all businesses and all employees all of the time
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Democratic leader
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a decision-maker who takes into account the views of employees. Decision-making can therefore be decentralized
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Fayol's theory of management
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approaches the study of management by looking at the functions of management. Henri Fayol's research found that the main functions of management included planning, organizing, commanding, coordinating, and controlling.
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Functions of management
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refers to the tasks of managers, such as the planning, organizing, directing and controlling of business operations
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Leadership
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the skill of getting things done through other people by inspiring, influencing and motivating them
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Management
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the practice of achieving an organization's objectives by using the available resources of the business, including its human resources
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Management by objectives
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a management technique whereby employees set their own objectiveds, with the help and advice of their manager. Subordinates then decide how they will achieve these targets. Progress towards meeting these objectives is then tracked with follow-up meetings with the manager
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Management style
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refers to the way in which managers tend to operate, such as in an autocratic, paternalistic, democratic or laissez-faire manner
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Paternalistic
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managers and leaders treat their employees as if they were family members by guiding them through a process of consultation. In their opinion, they act in the best interest of their workers
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Situational leadership
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the belief that there is no distinct or unique approach to leadership and management which suits all organizations and all employees. The 'best' style depends on different situations, such as the culture and attitudes of managers and workers
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Communication
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thethe transfer of information between different people and between business organizations
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Communication channels
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the methods or routes through which information is passed from the sender to the recipient. Open channels are used wh ninformational is not confidential and can be shared by anyone. Restricted channels of communication are used when information is confidential and is directed only to those who need to know
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Communication network
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refers to a diagram representing the communication structure within an organization, e.g. the wheel, the chain, the Y-chain and the circle
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Delayering
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the method of improving communication by reducing the number of levels in an organizational hierarchy
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Formal communication
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the unofficial channels of communication that are established by an organization
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Informal communication
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unofficial channels of communication naturally established by people from within the organization, often based on their common interests
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Minutes
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a written account of th eissues discussed in a business meeting
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Noise
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barriers to effective communincation, e.g. jargon ignorance or computer failure. These barriers cause communication breakdown
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Non-verbal communication
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any form of communication other than oral communication. Examples include: electronic systems, written methods, and visual stimulus
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Verbal communication
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communication via the use of spoken words, such as meetings, interviews and appraisals
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Video conferencing
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a communication method that allows meetings, or conferences, via telecommunications networks. The parties can see and hear each other via the electronic equipment
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Visual communication
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refers to communication methods that use visual images and stimuli, such as poster displays and a person's body language
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Accountability
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the extent to which a person is held responsible for the success or failure of a task
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Bureaucracy
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the official demonstrative and formal rules of an organization that govern business activity
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Centralization
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occurs when the majority of decision-making is done by a very small number of people, usually the senior management team, who hold onto decision-making authority and responsibility
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Chain of command
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refers to the formal line of authority, shown in a firm's organizational chart, through which orders are passed down in an organization
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Decentralization
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occurs when some decision-making authority and responsibility is passed onto others in the organization
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Delayering
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The process of removing one or more levels in the hierarchy in order to flatten out the organizational structure.
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Delegation
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the passing on of authority to a person lower down in the organizational structure
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Directors or Executives
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elected by the shareholders of a company to run the business on their behalf
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Flat organizational structure
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means that there are only a few layers in the organizational hierarchy and hence managers have a wide span of control
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Flexible structures
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are not based on the traditional hierarchical organisation of human resources. Instead, such structures enable a business to adapt its human resources when there is a need to respond to rapid change
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Formal groups
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refers to the official organization of people based on the needs of the business, such as by function or department
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Informal groups
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consist of people at work who have formed thier own associates based on friendship and/or common interests
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Matrix structure
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refers to the flexible organization of employees from different departments within an organization temporarily working together on a particular project
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Offshoring
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form of outssourcing that involves relocating business functions and processes to another country
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Organizational chart
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refers to the diagrammatic representation of a firm's formal organizational structure
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Outsourcing
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the act of finding external people or businesses to carry out non-core functions of a business, such as cleaning and ICT maintenance
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Re-engineering
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the redical redesign of organizational structures to better suit the changing needs of the business
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Responsibility
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refers to who is in charge of whom, such as the Marketing Manager of an organization being resonsible for the team of marketers
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Span of control
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the number of subordinates that are controlled by a manager, i.e. the number of people who are directly accountable to the manager
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Tall organizational structure
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means that there are many layers in the organizational hierarchy and hence managers have a narrow span of control
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Appraisal
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Impartial analysis and evaluation conducted according to established criteria to determine the acceptability, merit, or worth of an item.
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Cascading
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The vertical transfer of information in a hierarchy, via meetings between staff at different levels of hierarchy
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Contract of Employment
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refers to the legal agreement between an employer and employee, detailing the terms and conditions of employment (such as the job title, pay and responsibilities of the post holder)
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Employment legislation
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Set of laws that govern employment practices, such as anti-descriminatory behaviour when recruiting, selecting and training employees
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External recruitment
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involves recruiting staff from outside the organization to fill vacant posts
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Flexible work patterns
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The trend in using less core staff and more peripheral workers and subcontractors. Such structures improve the flexibility of the workforce
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Human resource management
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refers to the role of managers in determining the organization's people. This will include tasks such as the recruitment, selection, dismissal and training and development of employees
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Human resource planning
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Activities that managers engage in to forecast their current and future needs for human resources
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Internal recruitment
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the process of seeking employees who are currently within the firm to fill open positions
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Job description
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document that outlines the nature of a job i.e. the roles, tasks, responsibilities involved in a particular job. It is used for the recruitment and performance appraisal of employees
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Labour productivity
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measures the output per worker. The level of labour productivity isnan indicator of the current level of skills and motivation of the workforce
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Labour turnover
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measures the number of workers who leave a firm as a percentage of the workfoce, per year. It is often used to guage the level of motivation in an organization
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Person Specification
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business document that gives the profile of the ideal candidate for a job, such as their skills, qualifications, experience and other attributes
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Portfolio working
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means to simultaneously carry out a number of different jobs, often for various employers, usually on a part time or temporary basis. Examples include freelance editors and management consultants
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Recruitment
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the process of hiring suitable workers. This will entail a thorough job analysis in order to ensure that the best candidate is hired
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Shamrock organization
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refers to Charles Handy's idea that organizations are increasingly made up of core staff who are supported by insourced part-time workers and consultants and by outsourced staff and contactors
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Short-listing
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The process of sifting through applications to identify candidates who are suitable for the job. It is the stage that precedes the interview in the recruitment process
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Teleworking
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a method of workforce planning whereby employees work in a location away from the employer's workplace, such as those working from home or at a call centre
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