1.4 Key terms

Question 1

What is outsourcing?

Answer 1

Hiring a party outside the business to perform services and create goods. Usually done to get specialist help or advice on a product or service. E.g. HR management

Question 2

Definition of Dismissal

Answer 2

When an employee is asked to leave the business as a result of a serious offence they have committed and often is in effect immediately

Question 3

Definition of redundancy

Answer 3

When an employer is informed and given notice that their position in the business no longer exists and they are given a certain time frame with which to leave by

Question 4

What is a trade union?

Answer 4

An organisation set up to help and protect workers and improve their conditions.
E.g. Teachers Union, FBU (Fire brigade union)

Question 5

Define Collective Bargaining

Answer 5

When an employer discusses with one or a few representatives on behalf of the whole workforce about problems such as pay rises and working conditions

Question 6

What is an individual approach?

Answer 6

This allows employees to be treated on an individual basis, however it is every time consuming for employers and is more appropriate for smaller businesses

Question 7

Define recruitment

Answer 7

Identifying and attracting potential applicants

Question 8

What is internal recruitment?

Answer 8

When a business looks to fill a vacancy from within its existing workforce

Question 9

What is external recruitment?

Answer 9

When a business looks to fill a vacancy from any suitable applicant from outside the business

Question 10

What is ‘On the job’ training?

Answer 10

Training for employees that is provided within the workplace

Question 11

What is ‘Off the job’ training?

Answer 11

Training for employees that happens off site from the workplace

Question 12

Define Chain of Command

Answer 12

The path of authority along which instructions are passed from the CEO downwards.

Question 13

Define Span of Control

Answer 13

the number of subordinates under the manager’s direct control

Question 14

Define Delegation

Answer 14

The assignment of authority to another person to carry out specific activities. The process of distributing and entrusting work to another person.

Question 15

What is Centralisation?

Answer 15

A business structure where business decisions are made at the top at the Head Office and distributed down the chain of command

Question 16

What is Decentralisation?

Answer 16

A business structure where decisions are made by managers and subordinates further down the chain

Question 17

What is a tall structure?

Answer 17

A tall structure has one long chain of command. As the business grows, the number of management levels increase and the structure grows taller

Question 18

What is a flat structure?

Answer 18

Flat structures have fewer management levels with each level controlling a broad area or group. Flat organisations focus on empowering employees rather than adhering to the chain of command

Question 19

What is a matrix structure?

Answer 19

A structure in which some individuals within the business report to more than one leader. Employees also work across teams and projects as well as within their own department.

Question 20

Define Job Enlargement

Answer 20

When workers are given a greater variety of tasks to perform to make the work more interesting

Question 21

Define Empowerment

Answer 21

delegating more power to employees to make their own decisions in the working life.