Definitions - Unit 2

Question 1

Motivation

Answer 1

Motivation is the reason why employees want to work
hard and work effectively for the business

Question 2

Wage

Answer 2

Wage is a payment for work, usually paid weekly

Question 3

Time rate

Answer 3

Time rate is the amount paid to an employee for one
hour of work

Question 4

Piece rate

Answer 4

Piece rate is an amount paid for each unit of output

Question 5

Salary

Answer 5

Salary is payment for work, usually paid monthly.

Question 6

Bonus

Answer 6

Bonus is an additional amount of payment above
basic pay as a reward for good work

Question 7

Commision

Answer 7

Commission is payment relating to the number of
sales made

Question 8

Profit sharing

Answer 8

Profit sharing is a system whereby a proportion of the
company’s profits are paid out to employees

Question 9

Job satisfaction

Answer 9

Job satisfaction is the enjoyment derived from feeling
that you have done a good job

Question 10

Job rotation

Answer 10

Job rotation involves workers swapping around and
doing each specific task for only a limited time and
then changing around again

Question 11

Job enrichment

Answer 11

Job enrichment involves looking at jobs and adding
tasks that require more and/or responsibility

Question 12

Team working

Answer 12

Team-working involves using groups of workers and
allocating specific tasks and responsibilities to them

Question 13

Training

Answer 13

Training is the process of improving a worker’s skills

Question 14

Promotion

Answer 14

Promotion is the advancement of an employee in an
organisation, for example, to a higher job/managerial
level

Question 15

Organisational structure

Answer 15

Organisational structure refers to the levels of
management and division of responsibilities within an
organisation

Question 16

Organisational chart

Answer 16

Organisational chart refers to a diagram that outlines
the internal management structure

Question 17

Hierarchy

Answer 17

Hierarchy refers to the levels of management in any
organisation, from the highest to the lowest.

Question 18

Level of hierarchy

Answer 18

A level of hierarchy refers to
managers/supervisors/other employees who are
given a similar level of responsibility in an
organisation

Question 19

Chain of command

Answer 19

Chain of command is the structure in an organisation
which allows instructions to be passed down from
senior management to lower levels of management

Question 20

Span of control

Answer 20

The span of control is the number of subordinates
working directly under a manger

Question 21

Director

Answer 21

Directors are senior managers who lead a particular
department or a division of a business

Question 22

Line manager

Answer 22

Line managers have direct responsibility for people
below them in the hierarchy of an organisation

Question 23

Supervisors

Answer 23

Supervisors are junior managers who have direct
control over the employees below them in the organisational structure

Question 24

Staff managers

Answer 24

Staff managers are specialists who provide support,
information and assistance to line managers.

Question 25

Delegation

Answer 25

Delegation means giving a subordinate the authority
to perform particular tasks

Question 26

Leadership styles

Answer 26

Leadership styles are the different approaches to
dealing with people and making decisions when in
apposition of authority - autocratic, democratic and
laissez-faire

Question 27

Autocratic leadership

Answer 27

Autocratic leadership is where the manager expects
to be in charge of the business and to have their
orders followed

Question 28

Democratic leadership

Answer 28

Democratic leadership gets other employees involved
in the decision-making process

Question 29

Laissez faire leadership

Answer 29

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

Question 30

Recruitment

Answer 30

Recruitment is the process from identifying that the
business needs to employ someone up to the point at
which applications have arrived at the business

Question 31

Job analysis

Answer 31

Job analysis identifies and records the responsibilities
and tasks relating to a job

Question 32

Job description

Answer 32

Job description outlines the responsibilities and duties
to be carried out by someone employed to do a
specific job

Question 33

Job specification

Answer 33

Job specification is a document which outlines the
requirements, qualifications, expertise, physical
characteristics, etc., for a specified job

Question 34

Internal recruitment

Answer 34

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

Question 35

External recruitment

Answer 35

External recruitment is when a vacancy is filled by
someone who is not an existing employee and will be
new to the business

Question 36

Induction training

Answer 36

induction training is an introduction given to a new
employee, explaining the business’s activities,
customs and procedures and introducing them to
their fellow workers

Question 37

On-the-job training

Answer 37

On-the-job training occurs by watching a more
experienced worker doing the job

Question 38

Off-the job training

Answer 38

Off-the-job training involves being trained away from
the workplace, usually by specialist trainers.

Question 39

Workforce planning

Answer 39

Workforce planning is establishing the workforce
needed by the business for the foreseeable future in
terms of the number and skills of employees required

Question 40

Dismissal

Answer 40

Dismissal is when employment is ended against the
will of the employee, usually for not working
according to the employment contract

Question 41

Redundancy

Answer 41

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

Question 42

Contract of employment

Answer 42

A contract of employment is a legal agreement
between an employer and an employee, listing the
rights and responsibilities of workers

Question 43

Communication

Answer 43

Communication is the transferring of a message from
the sender to the receiver, who understands the
message

Question 44

Message

Answer 44

A message is the information or instructions being
passed by the sender to the receiver

Question 45

Internal communication

Answer 45

Internal communication is communication between
members of the same organisation

Question 46

External communication

Answer 46

External communication is communication between
the organisation and other organisations or
individuals

Question 47

Sender/transmitter

Answer 47

The transmitter or sender of the message is the
person starting off the process by sending the
message

Question 48

Medium of communication

Answer 48

The medium of communication is the method used to
send a message, for example, a letter is a method of
written communication and a meeting is a method of
verbal communication

Question 49

Receiver

Answer 49

The receiver is the person who receives the message

Question 50

Feedback

Answer 50

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

Question 51

One way communication

Answer 51

One-way communication involves a message which
does not call for or require a response

Question 52

Two way communication

Answer 52

Two-way communication is when the receiver gives a
response to the message and there is a discussion
about it

Question 53

Communication barriers

Answer 53

Communication barriers are factors that stop effective
communication of messages

Question 54

Formal communication

Answer 54

Formal communication is when messages are sent
through established channels using professional
language

Question 55

Informal communication

Answer 55

Informal communication is when information is sent
and received casually using everyday language