Key Terms

Question 1

Appraisal

Answer 1

The procedure of assessing the effectiveness of a process or an employee.

Question 2

Apprenticeships

Answer 2

An apprentice is someone who works for a skilled person for a fixed period of time in order to learn a trade.

Question 3

Aptitude testing

Answer 3

Measure the ability to acquire the knowledge or skills, which the employer feels necessary to do the job well.

Question 4

Coaching

Answer 4

Training or instructing the employee to achieve defined goals. Often carried out by your line manager.

Question 5

Code of practice

Answer 5

A form of regulation, normally self-regulation devised and run by an employers’ organisation that lays down appropriate standards for firms operating within the industry.

Question 6

Curriculum vitae (CV)

Answer 6

The itemisation of a job applicant’s qualifications, experience and interests.

Question 7

Discrimination

Answer 7

The practice of preferring a job applicant or an employee because of some physical or other identifiable characteristics. Discrimination on the grounds of sex, race and disability is illegal.

Question 8

Employment protection

Answer 8

Refers to legislation protecting the rights of the employee: eg Employment Protection Act 1978, which covers the individual employee’s statutory rights to employment protection.

Question 9

Ethical decisions

Answer 9

Pertains to the moral principles that should underpin decision-making. A decision made on ethical grounds might reject the most profitable solution in favour of one of greater benefit to society as well as the firm.

Question 10

Equal opportunities

Answer 10

A situation where employees and potential recruits have equal chances of being employed or promoted, whatever their sex, race, colour, nationality or national origin, religion or disability.

Question 11

Exit

Answer 11

The procedure by which an employee leaves a job position and/or employer.

Question 12

Functions

Answer 12

The content and focus of an individual’s job role. Business structured on a functional basis separate these job functions into different function based departments such as Finance, Human Resources, Production and Marketing.

Question 13

Goods

Answer 13

Physical objects; tangible products in contrast to services.

Question 14

Health and safety

Answer 14

The duty of employers to ensure the health, safety and welfare at work of all staff, according to the Health and Safety at Work Act 1974.

Question 15

Incentives

Answer 15

Financial or equivalent rewards (such as free holidays) to stimulate action from staff or customers.

Question 16

Induction

Answer 16

The introductory training programme designed to familiarise new recruits with the layout, health and safety, and security systems within the firm.

Question 17

Investors in People

Answer 17

Investors in People UK is a company that sets a standard for employee consultation and training, designed to advance the performance of a business through the management and development of its people.

Question 18

Job description

Answer 18

A detailed statement of the nature of the job, identifying the precise take and responsibilities involved.

Question 19

Legal

Answer 19

Legal matters affecting businesses usually comes from Act of Parliament, case law, delegated legislation and European regulations.

Question 20

Legislation

Answer 20

Laws passed by Acts of Parliament.

Question 21

Mentoring

Answer 21

Acting as trusted advisor to s new recruit. Ensures that all recruits have a senior figure they can turn to for advice.

Question 22

Motivation theories; Herzberg

Answer 22

Formulated a two-factor theory that acknowledges motivation is the will to work due to enjoyment of the work itself. This should be distinguished from doing a job in return for material goods eg houses, cars.

Question 23

Motivation theories; McGregor

Answer 23

Formulated an alternative theory (on management as much as motivation) to the idea that everyone has an inherent dislike of work that managers are in charge of people who have to be controlled.

Question 24

Motivation theories; Maslow

Answer 24

Suggested that it is possible to develop a hierarchical picture of needs, split into five broad categories - basic needs, security needs, group needs, self-esteem needs and self-fulfilment needs.

Question 25

Objectives

Answer 25

The medium to long-term targets that can give a sense of direction to a manger, team, department, whole organisation or government.

Question 26

Organisational structures

Answer 26

A diagram showing the lines of authority and layers of hierarchy within an organisation.

Question 27

Partnership

Answer 27

A legal form of business organisation where two or more people trade together under the Partnership Act of 1890. It is usual for partnerships to have unlimited liability, which means each partner is liable for the debts of the other partners.

Question 28

Person specification

Answer 28

Attributes required in an employee, usually divided into essential and desired. The person specification play a particular role when shortlisting candidates for interview.

Question 29

Pressure group

Answer 29

An organisation formed by people with a common interest who get together in order to further that interest.

Question 30

Private limited company

Answer 30

A small to medium-sized business that is often run by the family that owns it.

Question 31

Profit

Answer 31

What is left from revenue after costs have been deducted.

Question 32

Psychometric test

Answer 32

A selection test designed to reveal the personality of a candidate for recruitment or promotion.

Question 33

Public limited company

Answer 33

A company with limited liability that has over £50,000 of share capital and a wide spread of shareholders.

Question 34

Public sector

Answer 34

The organisations and activities that are owned and/or funded by national or local government.

Question 35

Regulations

Answer 35

Laws made by delegated powers or by European law.

Question 36

Self-regulatory

Answer 36

Occurs when an employers’ organisation decides to issue codes of behaviour to encourage the firms in an industry to act more responsibility.

Question 37

Services

Answer 37

Something intangible product offered by a firm, as opposed to a physical ‘good’, eg insurance, offering advice, delivery goods, training.

Question 38

Shortlisting

Answer 38

The procedure by which candidates are selected for job interviews.

Question 39

Sole trader

Answer 39

An individual who may or may not employ other people, but who owns and operates the business.

Question 40

Stakeholder

Answer 40

An individual or group with a direct interest in an organisations performance.

Question 41

Surplus

Answer 41

Any excess revenue over costs earned by non-profit-making organisations.

Question 42

Trade unions

Answer 42

An organisation representing the interests and goals of working people, involving the payment of subscriptions for membership.

Question 43

Aims

Answer 43

The long-term intentions that provide a focus for setting objectives. They are usually expressed qualitatively, sometimes in the form of a mission statement.