key terms and theories Flashcards
(23 cards)
price elasticity of demand
% change in quantity demanded/ % change in price
-less than 1 = inelastic ( not price sensitive - demand falls slowly when price increases)
- equal to 1 = unitary ( demand changes at same time as price)
income elasticity of demand
% change in quantity demanded/ % change in income
- less than 1 = inelastic
- more than 1 = elastic
- equal to 1 = unitary
outsourcing
market growth
market share
mayo
concluded from his experiments that workers are motivated by better communication btwn management + workforce
- motivated by greater involvement of the management in the lives of workforce
- working In teams is important
- led to more soft HRM approach
maslows hierachy of needs
top - bottom
1. self actualisation : autonomy, creativity + self development - hardest to achieve, e.g. target by providing training + development
- esteem needs : sense of worth, respect + value - provide awards + recognition, easier in flatter org structure
- social needs : sense of belonging in a group - team projects & outings
- safety + security needs : health, protection + providing for future - H&S laws, job security
- physiological needs : basic needs, food, warmth, rest etc - minimum wage, shelter
taylors scientific management
- workers are motivated by pay
-not naturally interested in work + so need close supervision - jobs need to be broken down into small tasks
- need training to be efficient as possible
- paid based on number of items produced - piece rate to increase productivity
problems w Taylors theory
- employees not engaged w work - boring repetitive tasks
- prioritise quantity over quality
- only work hard whilst supervised
- cut corners looking for shortcuts
herzbergs 2 factor theory
hygiene factors - reduce job dissatisfaction but do not motivate on their own
e.g. company policies, employee to employer relations, supervision + pay, working conditions
motivators - factors that act to motivate employees e.g. personal development, recognition, promotion etc
- development of job enrichment policies
mission
the overall aim of a company & the reason for its existence
objective
a specific aim for a company’s department or function that helps complete its overall mission and provides a direction for its workers
interest rate
the costs of borrowing and reward for lending
- represented as a percentage
fixed costs
costs that do not vary with output e.g. utility bills, rent, salary
variable costs
costs that vary with output e.g. raw materials, wages, packaging etc
incorporated x unincorporated
incorporated = business has a separate legal identity to its owners - companies
unincorporated = no difference between business and its owners - not a company
lack of continuity
business is not able to communicate effectively with their stakeholders during an emergency
company
separate legal entity - business is separate from its owners
- higher legal obligations
break even point changes
- increase in selling price = bep falls
- increase in VC = BEP increases
- increase in fixed costs = BEP rises
& vice versa
span of control
- the number of ppl which an individual is responsible for
tall structure
narrow span of control
- lots of layers of management
- slower communication from top of chain = distorted information
flat structure
wide span of control
- fewer levels of management
- greater decision making authority for subordinates
- may not work when business expands
limited internal promotion
centralisation VS decentralisation
- centralisation = greater degree of central control of business - autocratic + standardised decisions
- decentralisation = authority delegated to regions or subordinates - can cater to the needs of each branch
