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H2 Management of Business > Managing People Important Terms > Flashcards

Managing People Important Terms Flashcards

1
Q

Authoritarian leadership

A

A style of leadership/management that keeps all decision making at the centre of the organization.

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2
Q

Democratic leadership

A

A leadership style that involves a great deal of participation from the workforce to give their opinions which influence decisions made.

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3
Q

Laissez-Faire leadership

A

A leadership style that leaves much of the running and decision making of business to the workforce who are usually skilled and self-motivated.

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4
Q

Leadership

A

The role adopted by managers when guiding workers towards the goals of the organization.

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5
Q

Line managers

A

Those employees who are given formal positions and delegated authority over people within the hierarchy.

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6
Q

Staff managers

A

Those employees who provide specialist advice and assistance to functional managers.

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7
Q

Fringe benefits

A

Benefits received by workers in addition to their normal wage or salary, e.g. personal insurance coverage.

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8
Q

Hawthorne effect

A

Workers respond positively to a human relations approach from managers that focused on taking an active interest in staff and allowing them to operate in groups.

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9
Q

Hierarchy of needs

A

Needs from lower order such as physiological and security needs to higher order such as social, esteem and self-actual inaction needs which have to be fulfilled in order for workers to be motivated.

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10
Q

Hygiene factors

A

Based on Herzberg Two-Factor Theory, these are extrinsic to the job and can cause dissatisfaction if they are not adequately provided. Includes salary, work conditions and excessive supervision.

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11
Q

Job enlargement

A

Expanding the job scope to give workers a greater exposure and learn more skills.

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12
Q

Job enrichment

A

Based on the work of Herzberg, this aims to use the full capabilities of workers so that they are given an opportunity to be more fulfilled at work. Jobs are made more challenging, workers made more accountable and greater feedback on performance is provided.

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13
Q

Job rotation

A

Increasing the flexibility of the workforce and the variety of work they do by moving them from job to job. E.g. A HR personnel may be asked to plan employee trainings for a month and perform recruitment drive during the following month.

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14
Q

Labor turnover

A

(Number of staff leaving per year / total staff employed) x 100
The number of people who leave an organization in a particular time period as a prop oration of the total number employed.

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15
Q

Management by Objectives

A

Translating the overall aims of the organization into specific individual rarest after consultation with the employees to motivate them.

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16
Q

Motivation

A

The desire that people have to work well.

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17
Q

Motivators

A

Those factors that according to Herzberg, lead to positive job satisfaction and worker motivation.

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18
Q

Performance related pay (PRP)

A

When a bonus or salary increase is paid to a member if staff who has met or exceeded certain pre-set performance criteria.

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19
Q

Profit related pay

A

A bonus payment system for staff that varies with the level of profitability of the business.

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20
Q

Piece rate

A

The calculation of wages based entirely on the quantity of output produced over a given time period.

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21
Q

Time rate

A

The rate per hour used to calculate wages in the time- based payment system.

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22
Q

Self-actualisation

A

Used by Maslow to denote the sense of self-fulfilment that is at the highest level of human needs.

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23
Q

Accountability

A

The extent to which a worker is held answerable to supervisors or managers for his/her actions or performance.

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24
Q

Authority

A

The power and status to pass commands down the organization.

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25
Q

Business culture

A

The code of behaviour and attitudes influencing the actions and decision-making style of managers and other employees.

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26
Q

Centralisation

A

The tendency of keeping control and decision making within The Central office or among the senior management team.

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27
Q

Chain of command

A

The vertical one of authority that passes command down through the levels of hierarchy of an organization.

28
Q

Decentralisation

A

Power and decision making authority are delegated from head office to lower levels of hierarchy, divisions of the business and local regions.

29
Q

Delayering

A

The reorganisation of a business so that one or more layers of management is removed. This saves on overheads and reduces the length of the chain of command but it can create insecurity and increase pressure on the managers who remain.

30
Q

Delegation

A

The passing of authority to perform tasks or take decisions down the hierarchy but the final responsibility which remains with the delegator.

31
Q

Empowerment

A

The process of transferring authority (and responsibility) to take decisions to worker.

32
Q

Formal groups

A

Groups that have been officially created within an organization. They exist to undertake specific functions and their objectives are determined outside the group.

33
Q

Organization chart

A

A diagram showing the lines of authority and levels of hierarchy in an organization.

34
Q

Hierarchical structure

A

The different levels of management and staff where higher levels exercise more authority and control.

35
Q

Matrix structure

A

An organisational structure that puts managers into project teams that cut across functional and departmental lines

36
Q

Span of control

A

The number of people reporting directly to one manager or supervisor. A ‘wide’ span of control has many staff reporting to each manager.

37
Q

Strategic decision

A

An important decision that will substantially affect the business taken by senior management.

38
Q

Barriers to communication

A

The reasons why messages are not correctly recoded or understood by the receiver.

39
Q

Noise

A

Any form of disturbance or distraction that can prevent effective communication, including the sending of too much information.

40
Q

Communication

A

Effective communication is the transfer of information between people that produces the require response.

41
Q

Formal communication

A

Sending of messages using official communication channels.

42
Q

Feedback

A

The response from the receiver of a communication back to the sender to assess whether the message has been correctly understood and acted upon.

43
Q

Grapevine

A

Unofficial channels of communication in an organization.

44
Q

Informal communication

A

Messages sent through informal channels or the ‘grapevine’ rather than through formal networks.

45
Q

Horizontal communication

A

The passing of messages between people or groups on the same level of hierarchy.

46
Q

Vertical communication

A

Passing messages up or down the formal hierarchy.

47
Q

Intranet

A

An internal computer link that allows the passing of vast amount of data or information, such as emails. Between different departments or offices of a business.

48
Q

Jargon

A

Technical terms that are used in communication between specialists that mean little to non-specialists.

49
Q

One-way communication

A

Passing information without feedback from the receiver.

50
Q

Two-way communication

A

Communication that allows for feedback from the initial receiver to indicate receipt and understanding of the message.

51
Q

Appraisal

A

Any method of evaluating the performance of an employee against pre-set targets

52
Q

Arbitration

A

A method of trying to resolve industrial disputes by appointing an independent body (can be a judge) to listen to both sides of the argument.

53
Q

Contract of Employment

A

A legally binding agreement between worker and employer that sets out the terms and conditions of the job.

54
Q

Human Resource Management

A

Modern term for the personnel function which includes a wide range of responsibilities such as recruiting, training and appraising staff in order to increase their efficiency.

55
Q

Industrial dispute

A

Disagreement between workers (often represented by unions) and managers which can lead to industrial action such as strikes.

56
Q

Job description

A

Contains details of a job such as job tasks and responsibilities. Used in job advertisements.

57
Q

Job specification

A

Job specification

58
Q

Job evaluation

A

An objective process of comparing the demands and responsibilities of different jobs within an organization to develop the compensation package.

59
Q

Manpower (or workforce) planning

A

Establishing the workforce needs of the business for the foreseeable future in terms of numbers and skills of employees required.

60
Q

Induction training

A

The process of introducing new workers to their place of work, the colleagues and supervisors they will work with, staff roles and the culture of the organization.

61
Q

Off-the-job training

A

Staff training that take places away from the normal place of work, such as training colleges.

62
Q

On-the-job training

A

Staff training that take place at the normal place of work, e.g. observed skilled workforce plan.

63
Q

Recruitment

A

The process of finding the employees needed as identified by the organizations’ workforce plan.

64
Q

Dismissal

A

The act of terminating a contract of employment due to incompetence or indiscipline.

65
Q

Redundancy

A

The art of terminating a contract of employment due to insufficient work for the worker to do.

66
Q

Trade Union

A

An organizational formed of working people with the objective of protecting their interests at work.

H2 Management of Business (4 decks)

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