chapter 2 glossary

8/12/2019 Chapter 2 Glossary

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2.1 Human Resource Planning

Appraisal: The formal process of evaluating the contributions and performance of an employee, usuallyconducted through observations and an interview with the appraisee’s line manager.

Cascading: The vertical transfer of info in a hierarchy, via meetings between staff at different levels of thehierarchy.

Contract of employment : The legal agreement between an employer and employee, detailing the termsand conditions of employment (such as the job title, pay and responsibilities of the post holder)

Employment legislation: The set of laws that govern employment practises, e.g. anti-discrimatorybehaviour when recruiting, electing, training and promoting workers.

External recruitment : Recruiting staff from outside the organization to fill vacant posts. Can be done invarious ways e.g. headhunting a suitable person, advertising the post on the firm’s own website.

Flexible work pattern: The trend in using less core staff and more peripheral workers (e.g. part-time staffand consultants) and subcontractors. Such structures improve the flexibility of the workforce.

Human resource management : The role of managers in developing the organization’s people (hr).Includes: Recruitment, selection, dismissal and training and development of employees.

Human resource planning/workforce planning: The management process of forecasting an organization’s

current and future staffing needs.

Internal recruitment : The practice of hiring people who already work for the firm to fill a position, ratherthan recruiting someone new to the organization.

Job description: A document that outlines the nature of a job i.e. the roles, tasks and responsibilitiesinvolved in a particular job. Used for the recruitment and performance appraisal of employees.

Labour productivity: Measures the output per worker. The level of labour productivity is an indicator ofthe current level of skills and motivation of the workforce.

Labour turnover: Measures the no. of workers who leave a firm as a % of the workforce, per year. Oftenused to gauge the level of motivation in an organization.

Person specification: A business document that gives the profile of the ideal candidate for a job e.g. skills,qualifications, experience and other attributes.

Portfolio working: To simultaneously carry out a no. of diff. jobs, often for various employers, usually on apart-time/temporary basis. E.g.: Freelance editors and management consultants.

Recruitment : The process of hiring suitable workers. Will entail a through job analysis to ensure the bestcandidate is hired.

Shamrock organization: Charles Handy’s idea that organizations are increasingly made up of core (vital)staff who are supported by insourced part-time workers and consultants and by outsourced staff andcontractors.

Short-listing: The process of sifting through applications to identify candidates who are suitable for thejob. The stage that precedes the interview in the recruitment process.

Teleworking: A method of workforce planning where employees work in a location away from theemployer’s workplace, such as those working from home or at a call centre.



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2.2 Organizational structure

Accountability: the extent to which a person is held responsible for the success or failure of a task

Bureaucracy: The official administrative and formal rules of an organizations that govern businessactivity.

Centralization: Occurs when the vast majority of decision-making is done by a very small no. of people,usually the senior management team, who hold onto decision-making authority and responsibility.

Chain of command: The formal line of authority, shown in a firm’s organizational chart, through whichorders are passed down in an organization.

Decentralization: Occurs when some decision-making authority and responsibility is passed onto othersin the organization.

Delayering: The process of removing one or more levels in the hierarchy in order to flatten out theorganization structure.

Delegation: The passing on of authority to a person lower down in the organizational structure.

Directors/executives: Elected by the shareholders of a company to run the business on their behalf.

Flat organization structure: Where there are only a few layers in the organizational hierarchy and hencemanagers have a wide span of control.

Flexible structures: not based on the traditional hierarchical organization of human resources. Instead,such structures enable a business to adapt their human resources when there is a need to respond torapid change.

Formal groups: The official organization of people based on the needs of the business, such as by functionor department.

Informal groups: People at work who have formed their own associations based on friendship and/orcommon interests.

Matrix structure: The flexible organization of employees from different departments within anorganization temporarily working together on a particular project.

Offshoring: A form of outsourcing that involves relocation business functions and processes to anothercountry.

Organizational chart : The diagrammatic representation of a firm’s formal organizational structure.

Outsourcing: The act of finding external people/businesses to carry out non-core functions of a businesse.g. cleaning and ICT maintenance.

Re-engineering: The radical redesign of organization structures to better suit the changing needs of thebusiness.

Responsibility: Who is in charge of whom e.g. Marketing Manager being responsible for the team ofmarketers.

Span of control: The number of subordinates that are controlled by a manager, i.e. no. of people who aredirectly accountable to the manager.



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Tall organizational structure: Where there are many layers in the organization hierarchy and hencemanagers have a narrow span of control.

2.3 Communication

Communication: The transfer of information between diff. people and between business organizations.

Communication channels: The methods/routes through which info is passed from the sender to therecipient.Open channels: Used when info isn’t confidential and can be shared by anyone.Restricted channels: of communication are used when info is confidential and is directed only to thosewho need to know.

Communication network : A diagram representing the communication structure within an organization,e.g. the wheel, the chain, the Y-chain and the circle

Delayering: Method of improving communication by reducing the no. of levels in an organizationalhierarchy.

Formal communication: The official channels of communication that are established by an organization.

Informal communication: Unofficial channels of communication naturally established by people fromwithin an organization, often based on their common interests.

Minutes: Written record of issues discussed in business meeting.

Noise: Barriers to effective communication, e.g. jargon, ignorance, computer failure. These barriers causecommunication breakdown.

Non-verbal communication: Any form of communication other than oral communication. Example:

Electronic systems (e.g. email), written methods (e.g. letters) and visual stimulus (e.g. body language)

Verbal communication/ oral communication: Communication via the use of spoken words, e.g. meetings,interviews and appraisals.

Video-conferencing: Communication method that allows meetings, or conferences, viatelecommunications networks. The parties can see and hear each other via the electronic equipment.

Visual communication: Communication methods that use visual images and stimuli, e.g. poster displaysand a person’s body language.

2.4 Leadership and management

Autocratic: managers/leaders that adopt an authoritarian style by making all the decisions rather thandelegating any responsibility to their subordinates. Instead, the autocratic simply tells others what to do.

Contingency theory: Leadership model based on the belief that the ‘best’ leadership style for a business

depends on a range of interconnected factors e.g. the size, skills and abilities of the workforce. There’s nosingle style that suits all businesses and all employees all of the time.

Democratic leader: A decision-maker who takes into account the views of employees. Decision-makingcan therefore be decentralized.

Fayol’s theory of management : Approaches the study of management by looking at the functions ofmanagement. Henri Fayol’s research found that the main functions of management included planning,organizing, commanding, coordinating and controlling.



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Functions of management : The tasks of managers e.g. planning, organizing, directing and controlling ofbusiness operations.

Leadership: The skill of getting things done through other people by inspiring, influencing and motivatingthem.

Management : The practise of achieving an organisation’s objectives by using the available resources o the

business, including its hr.

Management by Objectives (MBO): Management technique where employees set their own objectiveswith the help/advice of their manager. Subordinates then decide how they will achieve these targets.Progress towards meeting these objectives is then tracked with follow-up meetings with the manager.

Management style: The way in which managers tend to operate e.g. in an autocratic, paternalistic,democratic, laissez-faire manner.

Paternalistic: Managers/leaders threat their employees as if they were family members by guiding themthrough a process of consultation. In their opinion, they act in the best interest of their workers.

Situational leadership: The belief that there is no distinct/unique approach to leadership/managementwhich suits all organizations and all employees. The ‘best’ style depends of diff. situations, e.g. culture and

attitudes of managers and workers.

2.5 Motivation

Absenteeism: Measures the % of the workforce not present at work in a given period of time. A high levelof absenteeism is a possible sign that there are low levels of motivation and job satisfaction.

Content theories: of motivation explain the actual factors that motivate people, i.e. what motivatesworkers. E.g. Herzberg looked at hygiene factors and motivators, whilst Mc Clellan studied the need for

achievement, affiliation and power.

Delegation: Refers to managers passing on tasks/responsibilities to their subordinates. Can motivateworkers who wish to be entrusted with assigned tasks & recognized for their abilities.

Empowerment : A form of non-financial motivator which involves a line manager giving his/hersubordinates some autonomy in their job & the authority to make various decisions.

Fringe benefits: Benefits received in addition to a worker’s wages/salaries e.g. free uniforms, subsidizedmeals, housing benefit, pension fund contributions and company cars.

Herzberg’s two factor theory: Looked at the factors that motivate employees, namely motivators and

maintenance (hygiene) factors.

Hygiene factors: Parts of a job that Herzberg referred to that don’t increase job satisfaction but help to

remove dissatisfaction e.g. reasonable wages & working conditions

Mayo’s Hawthorne effect : (experiments) found that workers are most motivated & productive when theyare able to have some social interaction with their fellow workers and when management takes aninterest in their well-being. This philosophy formed the basis of the human relations management schoolof thought on motivation.

Motivators: The factors that Herzberg considered to increase job satisfaction and motivation levels e.g.

praise, recognition and responsibility.

Job enlargement : Increasing the number of tasks that an employee performs, therebyreducing/eliminating the monotony of repetitive tasks.



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Job enrichment : Form of job enlargement that involves giving workers more challenging jobs with moreresponsibilities.Workers have better opportunities to express/develop their own ideas.

Job rotation: Form of job enlargement that entails giving workers a no. of diff. tasks of the same level ofcomplexity in a prescribed order. Helps to reduce the problems caused by performing repetitive tasks.

Maslow’s Hierarchy of Needs: Motivation theory that outlines the 5 levels of needs, from the requirement

to satisfy basic physiological needs through to self-actualization. Maslow argued that until a lower orderneed is met, people cannot progress onto the next level of needs.

McGregor’s Theory X and Theory Y: Theory based on management perception of worker attitudes in theworkplace. Theory X managers= Authoritarian + assume that employees need to be supervised. Theory Ymanagers: Assume employees seek recognition/praise for the contributions/achievements.

Motivation: Inner desire/passion to do something.

Performance-related Pay (PRP): Payment system that rewards people who meet set targets over a periodof time. Can be on individual, team, organizational basis.

Piece rate: Payment system that rewards employees based on the amount the he/she produce/sells. Pay

is directly linked to the productivity level of staff e.g. sales people.

Process theories: Motivation look at why people behave in a certain manner + how motivation can bemaintained/stimulated. Look at what people think about when deciding whether or not to put in theeffort to complete a task.

Productivity: measures level of output per worker. A measure of motivation because employees tend tobe more productive with increased levels of motivation.

Remuneration: The overall package of pay and benefits offered to an employee.

Scientific management : Developed by F.W. Taylow who believed that specialization and dividsion oflabour would generate greater levels of productivity. Taylor introduced a piece-rate payment system tolink pay with productivity levels.

Theory X: McGregor’s term for describing managers that perceive their employees in a pessimistic way,

i.e. subordinates need constant supervision, prefer to be told what to do, avoid if they can and don’t seekany responsibility.

Theory Y: An optimistic management stance towards worker attitudes as described by McGregor. TheoryY managers believe that employees don’t have initiative, want praise and recognition for theirachievements, and like taking on responsibility at work.

Time rate: Payment system that rewards employees for the time (rather than output/productivity) thatthey put into work. Expressed per period of time, e.g. $10 per hour or $5000 per month.

2.6 Organizational and Corporate Culture

Adaptive cultures: Exist in organizations that are receptive to change. Such organizations tend to beinnovative + are able to foster change.

Corporate culture/organizational culture: The traditions/norms within an organization, such as: dresscode, work ethos and attitude towards punctuality.

Cultural quotient (CQ)/cultural intelligence: Measures ability of an individual to blend into occupational,organization and national cultures. Measures ability of workers to cope with change.



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Culture clash: When there is conflict between 2 or more cultures within an organization. E.g. when 2 firmsintegrate via a merger/takeover.

Culture gap: Difference between existing culture of organization and its desired culture. Management willuse different strategies to reduce this gap.

Inert cultures: Opposite of adaptive cultures. Inertia is present in such cultures where people are negative

about and resistant to change.

Innovative cultures: Exist in organizations that empower workers to make important decisions and to acton their own initiative.

Person culture: Exist in organizations when staff in similar positions, with similar expertise and trainingform groups to share their knowledge and enhance their own skills.

Power cultures: Exist when there is one dominant individual/group who hold decision-making power. the organization structure is likely to be flat with a relatively wide span of control for the decision-makers.

Role cultures: exist in highly structured organizations with formal rules, policies and procedures. Jobroles are clearly stated in formal job descriptions & power is devolved to middle managers.

Task cultures: Exist in organizations where the focus is on getting results from the work done. Individualsand teams are empowered and have some discretion over their responsibilities.

2.7 Employer and Employee Relations

Arbitration: A process that involves an independent person body (arbitrator) deciding on an appropriateoutcome to a dispute. The arbitrator’s final decision becomes legally binding.

Collective bargaining: The negotiation process where trade union representatives and employerrepresentatives discuss with the intention of reaching a mutually acceptable agreement.

Conciliation/mediation: Process where the 2 parties involved in a dispute agree to use the services of anindependent mediator to help in the negotiation process.

Conflict : Disagreements that result from differences in the attitudes, beliefs, values or needs of people.Can also arise from past rivalries and personality clashes (collectively = internal politics)

Conflict resolution: The course of action taken to resolve conflict and differences in opinion.

Deadlock/stand-off : A situation when there has been a failure to reach a satisfactory compromise in the

negotiation process. deadlocks will tend to lead to industrial disputes.

Employers’ associations: Organizations that represent the general views and interests of all businesseswithin a certain industry by influencing government action and negotiating with trade unions.

Go-slow: Form of industrial action that involves employees working at the minimum pace allowableunder their employment contract.

Industrial action: Activities taken by employees who are disgruntled by working conditions and practicessuch as hours of work, pay disputes. E.g.: Go-slow, work-to-rule, strike action and overtime bans. A resultof poor employer-employee relationships.

Industrial democracy: That employees are given responsibilities and authority to complete tasks, i.e. theyhave opportunities to be involved in the decision-making process.



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Negotiation: Bargaining process where separate parties attempt to achieve a mutually acceptableoutcome, i.e. a ‘win-win’ situation for those involved.

Single-union agreement : An organization agreeing to participate in the collective bargaining process witha single trade union that represents the workers.

Staff associations: Similar role to trade unions (upholding welfare of staff) except they operate only

within an organization. The issues dealt with are more relevant to staff, although their bargainingstrength is weaker than that of a trade union.

Strikes: Form of industrial action that involves employees refusing to work. Usually a result of majorindustrial unrest (e.g. pay disputes, serious grievances)

Trade union/labour union: Organization that consists of worker members who unite to protect theirrights/well-being in the workplace.

Walk-out : Form of industrial action- when employees independently/collectively leave their place ofwork as a sign of protest/disapproval of management decisions and actions.

Work-to-rule: When employees do the absolute minimum required, as stated in their contracts ofemployment, i.e. they adhere precisely to all rules and regulations in order to reduce productivity.

2.8 Crisis Management and Contingency Planning

Business continuity plans: Used as part of crisis management to minimize the disruptions/damages(physical, psychological and financial) caused by a catastrophe in order for firm to retain its coreoperations.

Contingency planning: Looks at how to deal with crisis to ensure the continuity of the business. Aboutbeing proactive to change by using ‘what if?’ questions to identify probable threats.

Crisis management : The responses of an organisation’s management team to a crisis situation. Involves

setting up measures to allow instantaneous&constructive action to be taken in the event of a crisis.

Crisis planning: About being reactive to events and changes that might cause serious disruptions anddamage to a business. In extreme cases, a crisis can lead to the closure of the business.

Personal liability: That directors, managers or employees of an organisation can be held legallyresponsible for any catastrophic loss if certain laws & guidelines are not followed (such as ignoring healthand safety legislation in their workplace)

Quantifiable risks/insurable risks: Definite & financially measurable threats to a business e.g. fire damageto organisation.

Unquantifiable risks/uninsurable risks: Threats to business that are impossible/prohibitively expensiveto examine and measure.

chapter 2 glossary

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