Paper 1 SVT Flashcards
Public limited company (PLC)
A limited company, often a large business, with the legal right to sell shares to the general public; it’s share price quoted on the national stock exchange
Vision statement
A statement of the organization’s long term aspirations and what it would like to achieve or accomplish
Monopoly
a market structure where one company is the sole producer of a certain product
Acquisition
External growth strategy where a company buys over 50% of the shares of another company and becomes the controlling owner
Organizational structure by function
An organizational structure where the business is divided into smaller groups based on specialized functional areas, such as marketing, HR, operations, and finance
Situational leadership
A leadership style that varies based on the task at hand, situational leaders adapt their leadership styles to each situation
Autocratic leadership
A leadership style that keeps all decision making at the center of the organization
Internal growth
The organic growth of a business using its own capabilities and resources to increase its scale of operations with less risk
External growth
The inorganic growth of a business by means of merging, collaborating or taking over another business
Market share
Measures the value of a firm’s sales revenue as a percentage of the total sales revenue in the industry (market share = firm’s sales/ total sales in the market x 100)
Market growth
The increased percentage in the size of a market per year
Financial motivation
financial methods that businesses use to reward and extrinsically motivate their employees (commission, profit-related pay, performance-related pay, employee share-ownership, fringe benefits)
Non-financial motivation
non-financial methods that businesses use to intrinsically motivate their employees (job enrichment, job rotation, job enlargement, empowerment, teamwork, purpose/ the opportunity to make a difference)
Commission
Financial reward that provides workers a certain percentage of the sales of good/ service they are responsible for completing
Profit-related pay
Financial reward system which remunerates workers a certain percentage of the annual profits that the business earns
Performance-
related pay
Financial reward system to reward staff for reaching/ exceeding a set target
Employee share-ownership schemes
Financial reward system that gives workers, managers and directors shares in the company/ selling them at discounted prices
Fringe Benefits
Financial rewards of a job in addition to the basic pay including, medical insurance, a company car and pension schemes.
Job enrichment
Non-financial reward involving the vertical expansion of a job which attempts to motivate employees by giving them opportunities, challenges, and responsibilities
Job rotation
Non-financial reward involving moving employees between different tasks to promote experience and variety
Job enlargement
Non-financial reward involving the horizontal expansion of a job by increasing the scope of the work assigned
Empowerment
Non-financial reward involving the delegation of decision making power and greater responsibilities to employees to improve morale and motivation (as they believe their managers have trust in them)
Teamwork
Non-financial reward involving the combined efforts of a group of workers to achieve an organizational goal
Purpose/ the opportunity to make a difference
Non-financial reward which involves the concept that some employees are not driven by self-interest, but rather are motivated by making a greater difference. By recognizing the purpose in their work, they are intrinsically motivated
