Important Definitions People/Management

Question 1

Absenteeism

Answer 1

The number of staff who were not at work as a proportion of the total number of staff in a given period. N.O of days off divided by total days worked.

Question 2

Assessment centre

Answer 2

A selection method that involves assessing the candidates performance throughout a series of activities, exercises, meetings over a period of time

Question 3

Capacity utilisation

Answer 3

The actual level of output as a percentage of total output. Actual level divided by potential level times 100

Question 4

Communication Flows

Answer 4

How communication flows within an organisation

Question 5

Cost reduction

Answer 5

The range of methods that firms use to reduce the costs and therefore improve profits.

Question 6

Delegation

Answer 6

The passing of authority down the hierarchy

Question 7

Empowerment

Answer 7

Giving employees greater control over their working lives. by giving them the power to determine what they do, how they do it.

Question 8

External recruitment

Answer 8

Candidates for recruitment outside the organisation

Question 9

Financial methods of recruitment

Answer 9

A method of which has monetary value used to reward the workforce.

Question 10

Gross profit margin

Answer 10

A measure of profitability which relates revenue minus the cost of goods sold to sale revenue.

Question 11

Hierarchy

Answer 11

The structure of the workforce which shows who is accountable for whom.

Question 12

Improving Cashflow

Answer 12

Speeding up/increasing the volume of cash inflows or slowing down the amount of cash outflows.

Question 13

Improving Profit

Answer 13

Actions taken to increase the difference between total costs and total revenue.

Question 14

Maslow’s Hierarchy of Needs

Answer 14

Physiological, Security, Love/belonging, Self esteem, self actualisation.

Question 15

Motivation

Answer 15

The forces acting on (extrinsic) or within (intrinsic) an individual to cause them to behave in a particular way.

Question 16

Operating profit margin

Answer 16

A measure of flexibility which relates revenue minus costs of goods sold and expenses to sales revenue. Operating profit divided by net sales.

Question 17

Operations management

Answer 17

The function which tries to ensure that the rights goods/services are being produced at the right time to the right standard of quality.

Question 18

Profit budget

Answer 18

The target amount of surplus to be achieved in a given time.

Question 19

Rationalisation

Answer 19

Actions taken to cut costs by reducing the scale of the organisation, reducing capacity.

Question 20

ROCE

Answer 20

Profitability ration which measure profit in relation to the capital invested in a firm. Operating profit divided by Capital employed.

Question 21

Capital employed

Answer 21

Total assets - current liabilities.

Question 22

Span of control

Answer 22

The number of subordinates a line manager is directly responsible for.

Question 23

Taylors Scientific Management

Answer 23

A motivation theory which states that tasks should be studied scientifically in order to find the most efficient way of completing them. Standardised and all employees should be trained.

Question 24

Variance Analysis

Answer 24

The process of calculating and analysing any differences between actual and budgeted figures.