Unit 2 Business Studies - People in Business

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Define the organisation structure?
the internal links between managers+workers showing lines of authority.
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Define layers of management?
the no. of different levels of management+responsibility in a structure
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Define span of control?
the no. of junior employees each manager is directly responsible for
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Define line manager?
employees immediate superior or boss
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Define a tall organisation structure
has a narrow span of control and a large number of levels of hierarchy
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Define a flat organisational structure
Has a wide span of control and only a few levels of hierarchy
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Benefits of flat and tall organisations
F=quicker communication, workers need training therefore more motivating, more responsibility given to everyone. F=easier to control, lower training costs and less risk of employees making wrong decisions
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Define a delegation?
Used in a flat organisation where the business passes down authority to more junior employees.
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Define authority?
used in a tall organisation where the senior managers has the power to control others
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Define centralisation
where senior managers make all important decisions
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Define decentralisation
decision making power is spread to managers in branches and divisions of the business
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Benefits and drawbacks of centralisation?
senior managers have full control of decision making and in a time of crisis it leads to quick+strong leadership decisions. However their decisions might not benefit the whole business+no suggestions from other staff
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Benefits and drawbacks of decentralisation?
motivating as powers given to junior managers therefore given experience in decision making preparing them for senior roles. However poor decisions can harm the whole business+they need training which is expensive
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Define job analysis?
identifying the tasks and skills needed to perform a job correctly.
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Define job description?
a detailed statement identifying the tasks and duties of a particular job
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Define person specification?
a profile of the type of person that would make a good applicant and states the skills+qualifications needed
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Define internal recruitment?
appointing an existing employee of the business to fill a vacancy
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Define external recruitment?
appointing an employee of another business to fill a vacancy
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Define recruitment?
attracting people to apply for a job vacancy
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benefits of internal recruitment?
quicker+cheaper than employing externally, skills+personality is already known, won't need induction training and gives employees chance of promotion
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Benefits of external recruitment?
wider choice of potential applicants, could be more qualified+of higher quality, avoids creating another vacancy and avoids jealousy and conflict between employees in the firm.
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Selection process of recruitment
application, shortlist candidates, interviews+psychometric tests, choose best applicants and update all candidates on decision taken
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Define induction training?
initial training to familiarise new recruits with the systems of the business
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Define on the job training?
takes place at the workplace where employees receive training from more experienced employees.
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Define off the job training?
takes place off the work site and may involve attending a course at a training centre or college
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Advantages of induction training?
helps all employees feel a sense of belonging, reduces risks of an accident and employees feel more familiar with the business
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Advantages and disadvantages of on the job training?
cheaper method, training is exactly whats needed for the job and skills may not be transferable to other companies. However they don't gain an official qualification, quality of training can be poor+mistakes during training can damage the business
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Advantages and disadvantages of off the job training?
any mistakes during training don't damage the business, gains official qualification+workers motivated. But its expensive employees will be missing work time+they might leave once gaining a qualification
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Define staff appraisal?
making a judgement about the employees performance within in the business
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Benefits of appraisal?
provides feedback to work, so sets objectives for future+makes suggestions of improvement. Increases motivation+identify's possible training+promotion
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3 Main methods of appraisal?
superiors, self appraisal and peer appraisal
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Define retaining staff?
keeping existing staff in the business which cuts down the costs of recruitment, selection and training
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Define democratic?
managers involve all employees in decision making
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Define autocratic?
senior managers keep authority and make all the decision making
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Define lassiez faire?
giving as much guidance to subordinates and leave employees to own responsibilities and decision making
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Name 3 financial methods of motivation
piece rates, profit sharing and fringe benefits
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Name 2 non financial methods of motivation
job rotation and training
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Other cards in this set

Card 2


Define layers of management?


the no. of different levels of management+responsibility in a structure

Card 3


Define span of control?


Preview of the front of card 3

Card 4


Define line manager?


Preview of the front of card 4

Card 5


Define a tall organisation structure


Preview of the front of card 5
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