Unit 4 Human Resources Key Words

Question 1

Centralisation

Answer 1

Maintaining control by keeping authority at the senior levels of the organisation

Question 2

Chain of Command

Answer 2

The line through the hierarchy that shows who is responsible for whom from top to
bottom of an organisation

Question 3

Commission

Answer 3

An amount of money paid to an employee that is based on a percentage of the sales
he/she achieved; paid in addition to a basic salary.

Question 4

Contracts of employment

Answer 4

A legal document that sets out the terms and conditions of the job for the employer
and the employee

Question 5

Customer engagement

Answer 5

The relationship between the business and the customer that puts the customer’s
requirements at the centre of the operation to build brand loyalty

Question 6

Decentralisation

Answer 6

Where authority is spread widely through the organisation

Question 7

Delayering

Answer 7

The reorganisation of the organisation’s employees so that there are fewer levels of
management

Question 8

Delegation

Answer 8

Allocating a task to someone who would not normally be responsible for it

Question 9

Directors

Answer 9

The people who are elected by the shareholders to run the business on their behalf

Question 10

Employees

Answer 10

Individuals who work full time or part time for the business; they have a contract of
employment detailing their duties and rights.

Question 11

Employment law

Answer 11

Rulings that relate to the rights and responsibilities of people who work for a business; they affect the recruitment and selection process and how the business deals with its workers

Question 12

Flat organisational structure

Answer 12

An organisational structure with a wide span of control and few levels of hierarchy (a
short chain of command)

Question 13

Fringe benefits

Answer 13

Additional ‘perks’ that are in addition to a wage/salary; they are liable to income tax

Question 14

Full time

Answer 14

Working all the usual hours required of an employee; usually 35 hours or more

Question 15

Hierarchy

Answer 15

The management structure of a business/organisation showing the levels of responsibility. It is often shown as an organisation chart.

Question 16

Induction

Answer 16

Training given to a new employee when they start a new job; it provides information
about the business, its operation and working practices

Question 17

Job analysis

Answer 17

The process of determining what the job entails, including responsibilities and tasks

Question 18

Job description

Answer 18

A summary of what the job entails, including job title, duties and who they are
responsible for/to

Question 19

Job share

Answer 19

A system where two employees choose to share a full time job; they receive the salary
and benefits on a pro rata basis according to the proportion of the full time hours that
each works

Question 20

Motivatiom

Answer 20

The reasons people are interested in and committed to their job

Question 21

Off-the-job training

Answer 21

Employees are trained away from their job, at a college, training provider or the business’ training centre.

Question 22

On-the-job training

Answer 22

Employees learn alongside experienced colleagues while they are doing the job

Question 23

Organisational structures

Answer 23

The way in which the organisation is divided into levels of management, functions and
responsibilities

Question 24

Part time

Answer 24

Working only a proportion of the full time hours

Question 25

Person specification

Answer 25

Identifies the requirements of the job holder, including qualifications, experience and
skills

Question 26

Recruitment

Answer 26

The process of hiring a new employee

Question 27

Salary

Answer 27

A method of paying employees for their work; based on a fixed annual amount, normally paid monthly

Question 28

Span of control

Answer 28

The number of people for whom a manager is directly responsible

Question 29

Staff retention

Answer 29

Keeping staff once they have been employed

Question 30

Styles of management

Answer 30

The methods used by those in leadership roles to achieve the most effective outcomes
from the employees for whom they are responsible

Question 31

Tall organisational structure

Answer 31

An organisational structure with a narrow span of control and many levels of hierarchy
(a long chain of command)

Question 32

Training

Answer 32

Employees learn the skills and techniques needed to do the job or to prepare for a new
role

Question 33

Wage

Answer 33

A method of paying employees for their work based on an hourly, weekly or piece of
work basis, usually paid weekly or monthly