Chapter 5 - 9

• Stakeholders


  People or groups of people who can be affected by – and therefore have an interest in – any action by an organisation
• Shareholder concept


  The view that businesses and their managers have responsibilities to a wide range of groups, not just shareholders
• Corporate social responsibility


  The concept that accesses that business should consider the interests of society in their activities and decisions, beyond the legal obligations that they have
• Manager


  Responsible for setting objectives, organising resources and motivating staff so that the organisation's aims are met
• Leadership


  The art of motivating a group of people towards achieving common objectives
• Autocratic leadership


  A style of leadership that keeps all decision-making at the centre of the organisation
• Democratic leadership


  A leadership style that promotes the active participation of workers in taking decisions
• Paternalistic leadership


  A leadership style based on the approach that the manager is in a better position than the workers to know what is best for an organisation
• Laissez-faire leadership


  A leadership style that leaves much of the business decision-making to the workforce – a 'hands off' style approach and the reverse of the autocratic style
• Informal leader


  A person who has no formal authority but has the respect of colleagues and some power over them
• Emotional intelligence (EI)


  The ability of managers to understand their own emotions, and those of the people they work with, to achieve better business performance
• Motivation


  The internal and external factors that stimulate people to take actions that lead to achieving a goal
• Self-actualisation


  A sense of fulfilment reached by feeling enriched and developed by what one has learned and achieved
• Motivating factors (motivators)


  Aspects of a worker's job that can lead to positive job satisfaction, such as achievement, recognition, meaningful and interesting work and advancement at work
• Hygiene factor


  Aspects of a worker's job that have the potential to cause dissatisfaction, such as pay, working conditions, status and over-supervision by managers
• Job enrichment


  Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work
• Time based wage rate


  Payment to a worker made for each period of time worked, e.g.; one hour
• Piece rate


  A payment to a worker for each unit produced
• Salary


  Annual income that is usually paid on a monthly basis
• Commission


  A payment to a sales person for each sale made
• Bonus


  A payment made in addition to the contracted wage or salary
• Profit sharing


  A bonus for staff based on the profits of the business-usually paid as a proportion of basic salary
• Performance related pay


  A bonus scheme to reward staff for above-average work performance
• Fringe benefits


  Benefits given, separate from pay, by an employer to same or all employees
• Job rotation


  Increasing the flexibility of employees the variety of work they do by switching from one job to another
• Job enlargement


  Attempting to increase the scope of a job by broadening to deepening the tasks undertaken
• Job redesign


  Involves the restricting of a job-usually with employees' involvement and agreement-to make work more interesting, satisfying and challenging
• Quality circles


  Voluntary groups of workers who meet regularly to discuss work-related problems and issues
• Worker participation


  Workers are actively encouraged to become involved in decision-making within the organisation
• Team working


  Production is organised so that groups of workers undertake complete units of work
• Human resource management (HRM)

  The strategic approach to the effective management of an organisation's workers so that they help the business gain a competitive advantage
• Recruitment


  The process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it and attracting suitable candidate for the job
• Selection


  Involves the series of steps by which the candidates are interviewed, tested and screened for choosing the most suitable person for the vacant post
• Job description


  A detailed list of the key points about the job to be filled-stating all of its key tasks and responsibilities
• Person specification


  A detailed list of the qualities, skills and qualifications that a successful applicant will need to have
• Employment contract


  A legal document that sets out the terms and conditions governing a worker's job
• Labour turnover


  Measures the rate at which employees are leaving an organisation. It is measure by: Number of employees leaving in 1 year/average number of people employed * 100
• Training


  Work-related education to increase workforce skill and efficiency
• Induction training


  Introductory training programme to familiarise new recruits with the systems used in the business and the layout of the business site
• On-the-job training


  Instruction at the place of work on how a job should be carried out