HR Unit 2 Key Terms - Business Management

A higher average age of the population.

The statistical study of population trends, such as birth rates, death rates, age distribution, and net migration rates.

The employer's decision to terminate a worker's employment contract, usually due to the worker's incompetence and/or a breach of their employment contract.

The issues or factors that are beyond the control of the organization, e.g., national minimum wage legislation.

A form of flexible work practice that enables employees to work a set number of core hours each week, often at the office during peak periods of the day and/or week.

The ability and willingness of employees to relocate to another location or country for work reasons.

Labour markets in which people are on short-term, impromptu, temporary contracts. This includes freelance worker and independent contractors.

Also referred to as work from home (WFH), this is an aspect of flexitime that involves people using their homes to conduct their jobs.

HRM is a broad term used to describe the overall management of an organization's workforce, e.g. attracting, selecting, training, assessing, rewarding and retaining workers.

Also known as workforce planning, this is the management process of anticipating the organization's current and future human resource needs.

The issues or features that are within the control of the organization, e.g., staff remuneration and approaches to training.

Measures the extent to which workers have the ability and willingness to move between geographical locations and/or occupations for their employment.

People who move to other countries in search of better job opportunities.

This measures the difference between the number of people from abroad who enter a country (immigration) and the number of people who leave (emigration), usually for employment purposes.

The ability and willingness of employees to do another job or pursue a different career.

People who carry out several different jobs, often for different contractors, at the same time and usually on a temporary basis.

Occurs when an organization no longer has a job for the employee or when the employer can no longer afford to hire the employee, i.e., the job ceases to exist.

Flexible working practice that involves employees being away from the office as they rely on the use of telecommunications technologies, e.g. Internet and mobile technologies.

This is the provision of work-related education, either on-the-job or off-the-job, such as instructing and teaching (or mentoring) employees how to perform certain tasks in their job.

The total number of employees in a business organization at any particular point in time.

Also known as human resource planning, this refers to the ongoing process through which the current and future human resource needs of a business are identified and anticipated.

The statistical study of population trends, such as birth rates, death rates, age distribution, and net migration rates.

The extent to which a person is held responsible for the success or failure of a task, job, or project. It allows senior managers to have better control over the running of their organizations.

The administrative systems within an organization, such as the formal policies and procedures of the business. It includes the formal rules, regulations, and procedures of the organization.

The situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy.

The formal lines of authority in an organization. It can be seen via an organizational chart, which shows the formal path through which commands and decisions are communicated from senior managers to subordinates.

The transfer of information from one entity to another. It is vital to how a business operates.

The situation in an organization where decision-making authority is delegated throughout, rather from a central authoritative group.

This occurs when an organization removes one or more layers in its hierarchical structure, i.e., the number of layers of management is reduced, or made flatter.

The act of line managers entrusting and empowering employees with authority to successfully complete a particular task, project, or job role.

Also known as a horizontal structure, this type of organizational structure has only a few layers of management.

Type of organizational structure that has few levels in the organizational hierarchy.

A type of organizational structure that is tall/vertical, with many levels in terms of ranks.

The number of layers of formal authority in an organization. It is represented in an organizational chart.

The person directly above an employee in the organizational structure of a business.

People responsible for the day-to-day running of the business or a department within the business.

A form of flexible organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions of the business.

Structuring a workforce according to business functions, i.e., specialised roles or tasks.

Structuring a workforce according to the goods or services sold. Each department focuses on a different product within the organization's overall product portfolio.

Structuring a workforce according to different geographical areas based on where the firm's operations are.

A diagrammatic representation of an organization's formal organizational structure.

The formal interrelationships and hierarchical arrangements within a firm.

Refers to a line manager's level of concern in term of the people they are in charge of. An organization chart shows the breadth and depth of a person's roles and responsibilities in the business.

Refers to how many workers are directly accountable to (or under the authority of) a particular line manager.

Also known as a vertical structure, this type of organizational structure has many layers in the organizational hierarchy.

Type of organizational structure that has many levels of hierarchy, so the span of control is likely to be narrow.

Management style that involves centralised and autonomous decision-making, without input from others in the organization.

Management style that actively involves the participation of employees in the decision-making process.

The various roles and responsibilities of managers, i.e., coordinating, commanding, and controlling business operations.

A hands-off approach to leadership by devolving decision-making power to the workforce.

The art of inspiring and motivating other people towards achieving a common organizational aim or vision.

Refers to the way in which managers and leaders provide direction for others.

The art of getting things done through others by setting clear objectives and organising organizational resources.

Someone with decision-making authority in an organization and has responsibility for problem-solving in order to achieve specific organizational goals.

Management style that involves treating workers as family members, so managers make decisions believed to be in the best interest of the workforce

A relatively long approach to management based on objectivity, facts, and empirical evidence. This approach to management and leadership follows a formal and prescribed procedure.

Leadership style that requires leaders to change and adapt their approach in response to different situations and circumstances.

Peter Drucker's framework for setting organizational objectives, which must be specific, measurable, achievable, realistic, and timely.

Type of financial payment system that rewards workers a certain percentage of the sales of each good or service that they are responsible for completing.

Financial payment system advocated by F.W. Taylor to reward workers based on the level of their output or productivity.

The process of splitting up different parts of a job or task and assigning different employees or teams to each particular part of the work. This helps to improve operational efficiency and output.

Type of financial payment system that involves giving workers shares in the company they work for, either free of charge or at a discounted price.

The delegation of decision-making power to workers, granting them the autonomy and authority to be in charge of their own jobs and to execute their own ideas.

In Maslow's hierarchy of needs, this refers to the desire of people to feel respected, having value and having self-respect.

Also known as perks, these are financial benefits of a job in excess of the basic pay (wage or salary).

Financial reward for long-term service or for the completion of a fixed-term contract.

A. Maslow's theory of motivation that people are motivated by different levels of needs: physiological, safety, social (love and beginning), esteem and self-actualization.

Also known as maintenance factors, these are the factors that F. Herzberg argued cause dissatisfaction in the workplace (rather than motivation), so must be addressed.

Type of training intended for new employees in order to help them acclimatise with the people, policies, and processes of the organization.

The approach or process of hiring people who already work for the organization to fill a vacant post, e.g., internal promotion to a managerial post.

A type of non-financial motivation that takes place when more tasks or activities are added to a worker's job description.

Type of non-financial reward, involving enhancing the experiences of workers, giving workers a wide range of challenging tasks and more responsibility at work.

Type of non-financial motivation that involves workers switching between jobs (tasks) for a period of time.

The assurance given to employees that they will keep their current job for the foreseeable future, usually stated in an employment contract.

The training process of pairing, or attaching, an employee (the trainee or mentee) with a more experienced colleague (the mentor) who acts as a coach, trainer, or advisor.

The intrinsic desire to do something, which exists when workers do something because they actually want to, rather than because they have to.

Also known as growth factors, these factors address the higher-level needs in Herzberg's motivation theory and are based around the job itself, e.g., achievement, purpose, and responsibility.

Type of training led by external specialists and takes place away from the place of work.

Type of training that takes place within the organization, so employees are performing tasks at the place of work.

Type of financial payment system used to pay people a bonus for reaching or exceeding a set target.

Also known as basic needs, these are the requirements for human survival in Maslow's hierarchy of needs.

Financial reward system that pays workers based on their output or productivity, e.g., $8 per unit of output.

Refers to the operational efficiency of employees by calculating levels of output per worker. The more motivated employees are, the more productive they will be.

Type of financial reward system which remunerates workers a certain percentage of the annual profits that the business earns.

An intrinsic, non-financial type of motivation involving people doing genuinely meaningful work, making a difference on a personal, professional or social level.

The overall financial package of a person, e.g., salaries, commission, profit-related pay, performance-related pay, share ownership schemes, and fringe benefits.

Also known as security needs, these are the requirements in Maslow's hierarchy of needs that make people feel safe, such as job security.

Type of financial payment that rewards workers a fixed annual amount of money but paid in monthly instalments.

F.W. Taylor's theory of motivation, that people are, above all things, motivated by higher wages. Hence, there is one best way to motivate these employees.

This is the highest level of needs in Maslow's hierarchy of needs, which occurs when people become the very best that they can be and fulfil their potential.

Also known as love and belonging needs, this refers to the requirements in Maslow's hierarchy of needs about being accepted by others.

A form of non-financial motivation, involving the combined efforts of a group of workers to achieve of an organizational goal.

Financial reward system that pays workers based on their time input in the production process, e.g., $10 per hour.

The process of providing opportunities for employees to grow and develop by learning and acquiring employment-related skills, knowledge, and experiences.

Type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).

Refers to the various factors that can prevent information being transferred effectively or accurately.

This refers to the method or means through which communications take place between the sender and recipient.

The transfer of information from one entity to another. It is vital to how well a business operates.

These obstacles to effective communications stem from differences in social norms, beliefs, and values in different communities and countries

A form of written communication that uses computer wide area networks (WAN) as a mailing system