Topic 2 Key Terms Flashcards
ageing population
a demographic change that tends to
occur in high-income countries, with the average age of the
population getting higher. An ageing population has many implications for human
resource management
Demography
the statistical study of population characteristics, using data such as birth rates, death rates, ageing populations and net migration rates.
Flexitime
a system that enables workers to have a degree
of autonomy to determine when they work, so long as they
complete their work by set deadlines.
gig economy
refers to labour markets where workers are typically on short-term, temporary contracts or carry out
freelance work as independent contractors,
Homeworking
an aspect of flexitime whereby people work from their own homes.
Human resource management (HRM)
refers to the role
of managers in planning and developing the organization’s
people. This is done through interrelated functions such as the
recruitment and selection, as well as training and development
of employees.
Human resource planning (or workforce planning)
the management process of forecasting an organization’s current and future staffing needs,
Migrant workers
people who move to other countries in search of better job prospects and opportunities.
mobility of labour
the extent to which workers are
flexible enough to move to different locations (geographical
mobility) and/or their flexibility in changing to different jobs
(occupational mobility).
Net migration
measures the difference between the number of workers entering a country (immigration) and the number of people leaving (emigration).
Portfolio workers
those who simultaneously carry out a number of different jobs, often for various contractors, usually
on a temporary basis.
Teleworking
refers to working away from the office by using electronic forms of communication, such as telephones, the Internet and email.
Workforce
refers to the number of employees at any one point in time for a particular organization,
Accountability
describes the extent to which a person is held responsible for the success or failure of a task or job. It allows senior managers to have better control over the running of their organizations.
Bureaucracy
the official administrative and formal rules of an organization that govern business activity. It involves
prescribed rules and policies, standardized procedures and
formal hierarchical structures.
Centralization
occurs when the majority of decision making is done by a very small number of people (usually the senior leadership team) who hold decision-making authority and
responsibility.
Chain of command
refers to the formal line of authority, shown in an organization chart, through which formal
communications and orders are passed down.
Decentralization
occurs when decision making authority and responsibility are shared with others in the organization,
Delayering
the process of removing levels in the hierarchy to flatten the organizational structure, thereby widening the span of control in the hierarchy.
Delegation
the empowerment of a person lower down in the organizational structure by passing on control and decision-making authority to complete a certain task or role.
A flat (or horizontal) organizational structure
means that there are only a few layers in the formal hierarchy and hence managers have a relatively wide span of control.
hierarchy
hierarchy in a business refers to the organizational structure based on a ranking system. Each hierarchical level refers to a different rank with its associated degree of authority
and responsibility.
Levels of the hierarchy
refer to the number of layers of formal authority in an organization, The number of levels is shown in
an organization chart.
Line manager
refers to the person directly above an employee in the organizational structure.
Managers
the people responsible for the day-to-day running of the business or a department within the organization.
matrix structure
refers to a flexible type of organizational structure of representatives from different departments, temporarily working together on a particular project or job.
Organization by function
refers to structuring a workforce
according to business functions, ie. specialized roles or tasks
such as marketing or finance and accounts.
Organization by product
refers to structuring a workforce
according to the goods or services produced or sold, Each
department focuses on a different product within the
organization’s overall product portfolio.
Organization by region
refers to structuring a workforce
according to different geographical areas, based on where the
firm’s operations are.
Organization chart
a diagrammatic representation of a firm’s formal structure of human resources.
Organizational structure
refers to the formal interrelationships and hierarchical arrangements of human resources within a business.
Outsourced workers
the individuals or organizations hired on a contract basis to carry out specific but non-core roles.
Peripheral workers
the contingent workers consisting of part-time and temporary staff
hired by the organization to provide greater flexibility.
Professional core
the core workers consisting of full-time specialists (professionals) who
are vital for the organization’s operations and survival
A project-based organization
arranges human resources
around particular projects, each led by a project manager. Such
structures allow increased flexibility to adjust quickly to market
changes and to adopt rapid innovations.
Responsibility
refers to who is in charge of whom and in what role or capacity. Roles and responsibilities can be seen in an organization chart.
Span of control
refers to the number of subordinates overseen
by a manager, ie. the number of people who are directly
accountable to the manager.
A tall (or vertical) organization structure
means that there are many layers in the hierarchy and hence managers have a narrow span of control,
Autocratic leadership
refers to leaders who adopt an
authoritarian approach by making all the decisions rather than
delegating any authority to their subordinates. Instead, the
autocratic leader simply tells others what to do.
Democratic leadership
refers to the leadership approach that considers the views of others when making decisions. This
participative leadership style means that decision-making is
decentralized.
Functions of management
refers to the roles of managers,
namely the planning, organizing, commanding, coordinating
and controlling of business operations,
Intuitive thinking and management
are based on personal
beliefs, perceptions and instincts or gut feelings. This approach
to management and leadership considers issues that are not
necessarily quantifiable.
Laissez-faire leadership
is an approach based on having
minimal direct input into the work of employees. Instead,
laissez-faire leaders allow subordinates to make their own
decisions and to complete tasks in their own way.
Shamrock Organisation
organisations are increasingly made up of core staff who are supported by peripheral workers and outsourced workers (consisting of consultants and contractors)
Leadership
the skill of getting things done through other people by inspiring, influencing and invigorating them to
achieve organizational goals
Leadership style
refers to the ways in which decision makers behave or reveal their behaviour. These styles or approaches are categorized as autocratic, paternalistic, democratic, laissez-faire or situational,
Management
the practice of achieving an organization’s objectives by using and controlling the available human and non-human resources of the business in an effective way.
manager
someone with decision-making authority within an organization and has responsibility for problem solving in order to achieve specific organizational goals,
Paternalistic leaders
treat their employees as if they were family members, guiding them through a consultation process
and acting in the perceived best interest of their subordinates.
Situational leadership
refers to the approach that considers there is no single leadership style that suits all situations. The optimal style depends on situational factors, such as the attitudes, behaviour, and competencies of managers and
workers.
360-degree appraisal
involves collecting evidence about the appraisee’s job performance from a range of stakeholders who
work with the employee.
appraisal
the formal assessment of an employee’s
performance in fulfilling his or her job based on the tasks and
responsibilities set out in their job description.
Commission
a type of financial reward that pays workers a
certain percentage of the sale of each good or service that they
are responsible for.
Differentiated piecework
an incentive scheme that rewards
more productive workers who exceed a pre-determined
benchmark.
Division of labour
the process of breaking down different
aspects of a job or task and assigning different people to each
particular part of the work in order to improve efficiency and
output,
Empowerment
a non-financial motivator that involves developing the potential of workers or teams by granting them
the authority to make decisions and to execute their own ideas
to solve business problems.
Employee share ownership schemes
a type of payment
system that rewards staff by giving them shares in the company
or by selling the shares at a discounted price.
Equity theory
suggests that people make comparisons of perceived fairness in the workplace based on the ratio of their input (effort) to output
(rewards).
Esteem needs
Maslow’s hierarchy of needs refers to the desire of people to feel respected, having value and having self- respect.
External recruitment
the process of hiring people from
outside the business.
Formative appraisal
the planned and ongoing process in
which data and evidence are used to inform employees about
what to do to improve their work practices.
Fringe payments
financial rewards paid in addition to
a worker’s wages or salaries, such as subsidised meals, housing
allowance and pension fund contributions.
Herzberg’s motivation-hygiene theory
looked at factors that
must be met in order to prevent dissatisfaction and the factors
that actually motivate employees.
Hierarchy of needs
refers to A. Maslow’s theory of motivation,
that people are motivated by different levels of needs:
physiological, safety, social, esteem and self-actualization.
Hygiene factors
are parts of a job that PF. Herzberg referred
to that do not increase job satisfaction but help to remove
dissatisfaction, such as reasonable wages and working
conditions.
Induction training
a type of training aimed at introducing
new employees to the organization.
Internal recruitment
involves hiring people who already work
for the business to fill a vacant post.
Job enlargement
refers to increasing the number of tasks that an employee performs, thereby reducing or eliminating the
monotony of repetitive tasks.
Job enrichment
involves giving workers more responsibilities
and more challenging jobs.
Job rotation
a form of job enlargement whereby workers are
piven different tasks, but of the same level of complexity, to help
reduce the problems associated with repetitive tasks.
Labour turnover
measures the percentage of the workforce
that leaves the organization in a given time period, usually one
year,
Maslow’s hierarchy of needs
outlines five levels of needs, from
satisfying physiological needs to self-actualization, Lower order
needs must be met before people progress up the hierarchy.
Motivation
refers to the desire, effort and passion to achieve
something. It is the willingness to complete a task or job with
intent and purpose.
Motivators
the factors that F Herzberg considered to
increase job satisfaction and motivation levels, such as praise
and recognition.
Movement
according to F Herzberg, occurs when people do
something because they need to, so they feel obliged to do so.
Expectancy theory
Assumes that people behave in a certain way in exchange for rewards based on their conscious expectations. V. Vroom argued that people only put in the effort to do a job if they expect that their role will help to achieve the required result
national minimum wage
the lowest hourly pay that all
firms must remunerate their workers, as stipulated by the
government.
Non-financial rewards
are non-monetary factors that motivate
people by offering psychological and intangible benefits, i.e.
factors not directly linked to money.
Off the job training
refers to training conducted off-site, such
as ata tertiary college or hotel conference centre.
On the job training
refers to training carried out whilst at
the workplace. For example, the training can be delivered by a
manager, supervisor or other specialist.
Performance-related pay (PRP)
a payment system that
rewards people who meet set targets over a period of time, The
targets can be on an individual, team or organizational basis,
Piece rate
a payment system that rewards people based on
the amount that they produce or sell. Thus, their pay is directly
linked to their level of productivity.
Physiological needs (or basic needs)
in Maslow’s hierarchy of
needs are the requirements for human survival, including food,
water, shelter and warmth.
Productivity
measures the level of output per worker. It is an
indicator of motivation as employees tend to be more productive
with increased levels of motivation,
Profit-related pay
a type of financial reward system which
remunerates workers a certain percentage or amount of the
annual profits that the firm earns.
Purpose
a non-financial reward, refers to the opportunity to
make a difference.
Remuneration
means the overall compensation package, such
as salaries, commission, profit-related pay, performance-related
pay, share ownership schemes and fringe benefits.
Safety needs (or security needs)
in Maslow’s hierarchy of
needs are the requirements that make people feel safe, such as
job security.
Salary
a type of financial payment that rewards workers a
fixed annual amount of money, usually paid per month,
Scientific management,
developed by FW. Taylor, suggests
that specialisation and division of labour help to increase the
level of productivity. This is especially the case if pay is linked
to a piece-rate reward system.
Self-actualization
in Maslow’s hierarchy of needs refers to the
highest level of needs, which occurs when people became the
very best that they can be and fulfil their potential.
Self-appraisal
involves employees appraising themselves based
on a set of pre-determined criteria.
Self-determination theory,
coined by E. Deci and R. Ryan,
describes three core requirements that facilitate growth and
motivation in people: autonomy, competence and relatedness.
Social needs (or love and belonging needs)
in Maslow’s
hierarchy of needs refers to the requirement to be accepted by
others.
Asummative appraisal
a written description of an employee’s
performance at work, summarizing what s/he has done and
achieved during given period of time, usually a year.
Teamwork
a form of non-financial motivation, which
involves the combined efforts of a group of workers to achieve
organizational goals.
Time rate
a payment system that rewards staff for the time
(rather than output) that they put into work, It is expressed per
period of time, ¢.g. $10 per hour or $5,000 per month,
Training
the process of providing opportunities for workers
to learn and acquire employment-related skills and knowledge.
Wages
a type of financial reward payment system based on
time or output. Wages are paid as time rate (hours) or piece rate (output).
Open channels of communication
used when information
is not confidential and can be shared by anyone.
Restricted channels of communication
are used when
information is confidential and is directed only to those who
need to know.
Verbal communication (or oral communication)
refers to
communication via the use of spoken words, such as meetings,
interviews and appraisals,
Videoconferencing
a communication method that allows
communications to take place via telecommunications
networks. The parties can see and hear each other using
videoconferencing hardware and software technology.
Visual communication
the use of visual stimuli to
communicate information or ideas.
Written communication
refers to communication methods
that make use of the written word, such as letters, memoranda,
reports and notices.
Barriers to communication
refer to anything that can limit or
impede the effectiveness of communications, thereby leading
to information failure. Examples include jargon, ignorance,
internal politics and computer failure.
The channel of communication
refers to the method(s)
through which communications take place between the sender
and recipient.
Communication
the transfer of information between
different people and between organizations.
Electronic mail
refers to the process of using computer wide
area networks (WAN) as a mailing system for communication
purposes.
External communication
conducted between members of
one organization and members of another.
Formal communication
refers to the official and established
channels of communication.
Grapevine communication
covers all aspects of
communication through unofficial (informal) channels.
Jargon
is specialist or technical language used to speed up
communication,
Informal communication (or grapevine communication)
refers to unofficial, natural and unstructured channels of
communication, naturally established by people from within
an organization.
Information overload
the excessive amount of information
being passed onto staff, Le. swamping workers with too much
communication. This can increase workload and stress.
Internal communication
refers to communications within the
business organization.
Internal politics
refers to conflict between people within an
organization.
Non-verbal communication
is any form of communication
other than oral communication, such as electronic systems
(such as email), written methods (such as letters) and visual
stimulus (such as body language).
