1.

4 Key terms sheet

Key term Definition Tick
Negotiation of wages/conditions of employment between employee
Collective bargaining representatives / trade unions and the employer

Referred to informally as firing or sacking. It is the termination of employment

Dismissal by an employer against the will of the employee.
Employer employee The way in which a company’s management and its employees behave
relations towards each other

Individual approach When employers develop relationships with employees at an individual level
Multiskilling The process of increasing the skills of employees
Part-time Workers that generally work a few hours or a few days a week. Fewer hours
employees than a full-time employee.
When a business needs to reduce the size of its workforce or even close.
Redundancy Redundancy can be voluntary
A cost to businesses in terms of recruitment, training,
Staff as a cost remuneration, welfare and even severance
Employers recognise the input of employees as an important business
resource. They contribute to the value of output, whether this is through
Staff as an providing added value to a product by supporting the manufacturing process or
asset through effective customer service
Temporary work The job position is generally for a limited period of time
A workforce representative that act to protect and improve the economic and
Trade unions working conditions for their members.
External recruitment When the business looks to fill the vacancy from outside of the business.
Introductory training given to employees covering its background, policies,
Induction training health and safety procedures
Internal recruitment Selecting employees who already work within the business to fill job vacancies
When employees are given training away from their normal job environment,
Off the job training often in a classroom
on the job training Learning/gaining/developing skills whilst at work doing the job
Recruitment The process of finding and selecting workers.
The developing of a person, to enhance skills and knowledge. Training can be
Training on-the-job or off-the-job
An organisational structure where business decisions are made at the top of
Centralised structure the hierarchy by senior management/or at the headquarters of a business
Chain of
command The way authority and power is organised in an organisation
When a business allows branches to take more control/make their own
Decentralised structure decisions
Flat organisational One with few layers and a wider span of control for each
structure manager
The order or levels of responsibility in an organisation, from the lowest to the
Hierarchy highest
Matrix organisational
structure Organises employees from different disciplines or divisions into projects/teams
A diagram that shows who is answerable to whom in an
Organisation organisation. It can also show vertical and horizontal
structure communication links
The number of employees/subordinates that a manager is
Span of control responsible for
Tall organisational
structure One with many layers and a narrow span of control for each manager
A sum of money added to an employee’s wages/salary as a reward for
Bonus performance when they reach or exceed their targets
Commission A payment to a worker based on a percentage of the value of sales.
Employees opinions/feedback are sought when making
Consultation business decisions
Delegation Authority to pass down from superior to subordinate
1.4 Key terms sheet
Giving official authority to employees to make decisions and to control their
Empowerment own work activities
Monetary rewards used to help improve staff motivation and achievement.
They can include Piecework, commission, bonuses, profit sharing and
Financial incentives performance related pay
Employees have choice over how/when they work by agreement with the
Flexible workforce company. E.g. zero hours contracts, homeworking, part-time
Herzberg’s two factor A theory of motivation that is split into two categories: Motivators and Hygiene
theory factors
Giving an employee more work to do of a similar nature,
Job enlargement horizontally extending their work role
Giving employees greater responsibility and recognition by vertically extending
Job enrichment their work role
Job rotation The changing of jobs or tasks
Maslow's hierarchy of
needs The order of people’s needs, starting with basic human needs
Mayo's human relations Emphasises the importance of the ways in which people interact and how they
theory are treated. Motivation can improve when employees feel more involved
Motivation The reason for people's actions, willingness and goals.
Non-financial methods
of motivation Non-monetary rewards
Ways of encouraging employees without the use of monetary rewards e.g
Non-financial Delegation, consultation, empowerment, team working, flexible working, job
techniques enrichment, job rotation and job enlargement
Performance- A financial reward to employees whose work is considered to have reached a
related pay required standard
A payment system where employees are paid an agreed rate for every item
Piece rate produced
A form of financial incentive given to employees, where part of the profit of the
Profit sharing business is shared amongst the employees.
Suggested a job could be broken down into constituent parts, so that the most
Taylor’s scientific efficient way of working could be calculated. He believes workers are motivated
management by money
Team working Organising people into working groups that have a common aim
The physical surroundings and the atmosphere of the workplace, and the way
Working conditions staff are treated by managers
A leadership style where the decision-making is best kept with managers, who
Autocratic leadership will direct subordinates with little consultation
A type of leadership style in which members of the group take a participative
role in the decision-making process. Group members are encouraged to share
Democratic leadership ideas and communication is two ways
A leadership style where employees are encouraged to make their own
Laissez-faire decisions within certain limits
Leadership Having a vision, sharing that vision with others and providing direction.
Management The day-to-day organisation of the business, including staffing.
Leaders that are in control, but take the welfare of employees into account
Paternalistic leaders when making decisions