Important Definitions People/Management Flashcards
Absenteeism
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.
Assessment centre
A selection method that involves assessing the candidates performance throughout a series of activities, exercises, meetings over a period of time
Capacity utilisation
The actual level of output as a percentage of total output. Actual level divided by potential level times 100
Communication Flows
How communication flows within an organisation
Cost reduction
The range of methods that firms use to reduce the costs and therefore improve profits.
Delegation
The passing of authority down the hierarchy
Empowerment
Giving employees greater control over their working lives. by giving them the power to determine what they do, how they do it.
External recruitment
Candidates for recruitment outside the organisation
Financial methods of recruitment
A method of which has monetary value used to reward the workforce.
Gross profit margin
A measure of profitability which relates revenue minus the cost of goods sold to sale revenue.
Hierarchy
The structure of the workforce which shows who is accountable for whom.
Improving Cashflow
Speeding up/increasing the volume of cash inflows or slowing down the amount of cash outflows.
Improving Profit
Actions taken to increase the difference between total costs and total revenue.
Maslow’s Hierarchy of Needs
Physiological, Security, Love/belonging, Self esteem, self actualisation.
Motivation
The forces acting on (extrinsic) or within (intrinsic) an individual to cause them to behave in a particular way.
Operating profit margin
A measure of flexibility which relates revenue minus costs of goods sold and expenses to sales revenue. Operating profit divided by net sales.
Operations management
The function which tries to ensure that the rights goods/services are being produced at the right time to the right standard of quality.
Profit budget
The target amount of surplus to be achieved in a given time.
Rationalisation
Actions taken to cut costs by reducing the scale of the organisation, reducing capacity.
ROCE
Profitability ration which measure profit in relation to the capital invested in a firm. Operating profit divided by Capital employed.
Capital employed
Total assets - current liabilities.
Span of control
The number of subordinates a line manager is directly responsible for.
Taylors Scientific Management
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.
Variance Analysis
The process of calculating and analysing any differences between actual and budgeted figures.
