Important Definitions

Question 1

Ethical management

Answer 1

Refers to the process of abiding by moral standards and doing the ‘right’ thing in the interests of all stakeholders

Question 2

Social responsibility

Answer 2

Is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment

Question 3

Leadership

Answer 3

Leading is the process of influencing or motivating people to work towards the achievement of the organisation’s objectives. Effective leaders typically display the following qualities - interpersonal, informational, and decision-making

Question 4

Employee relations

Answer 4

Refers to the total interaction that occurs between an employer (and their representatives) and the employee (and their representatives) in regard to the establishment of conditions of employment

Question 5

Stakeholder

Answer 5

Are groups and individuals who interact with the organisation and have an interest in its activities

Question 6

Performance indicator

Answer 6

Specific criteria used to measure the efficiency and effectiveness of the organisation’s performance (for example - net profit, sales, rate of productivity growth, results of a customer satisfaction survey, results of an employee satisfaction survey, wastage and workplace accidents

Question 7

Business competitiveness

Answer 7

The ability of an organisation to sell products in a market

Question 8

Efficiently

Answer 8

A measure of how well an organisation uses resources to achieve objectives

Question 9

Effectiveness

Answer 9

The degree to which an organisation uses resources to achieve objectives

Question 10

Organisational objectives

Answer 10

H

Question 11

Vision

Answer 11

H

Question 12

Productivity

Answer 12

A measure of efficiency - the amount of output produced compared to the amount of input required in production

Question 13

Strategies

Answer 13

The actions that an organisation takes to achieve specific objectives

Question 14

Flexibility

Answer 14

H

Question 15

Innovation

Answer 15

A process that occurs when something already established is improved upon

Question 16

Profit

Answer 16

= revenue less expenses

Question 17

Profitability

Answer 17

A measure of the earning performance of the business; it indicates the business’s ability to maximise profits

Question 18

Market share

Answer 18

The business’s share of the total market is subdivided into groups that share one or more common characteristic

Question 19

Customer loyalty

Answer 19

H

Question 20

Customer service

Answer 20

Responding to the needs and problems of the customer. Central to this response is making sure the desired product is delivered at the appropriate place at the right time

Question 21

Reputation

Answer 21

H

Question 22

Image

Answer 22

How a business is perceived by the world at large, especially consumers

Question 23

Quality

Answer 23

The degree of excellence of goods or services and their fitness for a stated purpose

Question 24

Customer satisfaction

Answer 24

The degree to which the business’s perceived performance meets a customer’s expectations

Question 25

Customer complaints

Answer 25

An indication of whether or not customers are satisfied with the performance of the organisation

Question 26

Benchmark

Answer 26

A process that compares the strengths and weaknesses of a business against those of other successful businesses,with the aim of reforming those processes that are not achieving the business’s objectives

Question 27

Performance indicator

Answer 27

Measurable statements which businesses use to evaluate performance

Question 28

Corrective action

Answer 28

H

Question 29

Competitive advantage

Answer 29

G

Question 30

Sales

Answer 30

F

Question 31

Costs

Answer 31

G

Question 32

Prices

Answer 32

G

Question 33

Staff morale

Answer 33

H

Question 34

Staff absenteeism

Answer 34

G

Question 35

Staff turnover

Answer 35

A measure of the number of staff who are leaving the organisation

Question 36

Employee empowerment

Answer 36

J

Question 37

Decision-making

Answer 37

Z

Question 38

Delegation

Answer 38

The transfer of authority and responsibility from a manager to an employee to carry out specific activities

Question 39

Employee satisfaction

Answer 39

A

Question 40

Work ethic

Answer 40

W

Question 41

Employee of choice

Answer 41

E

Question 42

Flexibility of work arrangements

Answer 42

T

Question 43

Communication

Answer 43

The ability to transfer information from a sender to a receiver, and listen to feedback

Question 44

Cooperation

Answer 44

A democratic organisation owned and controlled by the people it serves, who join together for a common benefit

Question 45

Cohesion

Answer 45

I

Question 46

Positive working relationships

Answer 46

Y

Question 47

Feel valued

Answer 47

B

Question 48

Corporate culture

Answer 48

Refers to the values, ideas, expectations and beliefs shared by members of the organisation