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148 terms

Glossary of Terms

Glossary of Terms for Business Management Units 3 & 4
STUDY
PLAY
acquisition
Purchase of an organisation by another organisation
analytical skills
The ability to identify relevant issues, recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation
appraisal
Evaluation of the performance of an employee against pre-set tasks
assembly line
Mechanical system in a factory whereby an article is conveyed through sites at which successive operations are performed on it
assets
Anything of material value or usefulness
Australian Industrial Relations Commission AIRC
4 word term + initials - commission operated under the Workplace Relations Act 1996 to facilitate agreement on wages and conditions
Australian Workplace Agreement
3 word term - an agreement made directly between an employer and employee covering working conditions and remuneration
autocratic
Management style where all decision making is centralised (made by the manager), there is little delegation and communication is one-way
award
An agreement which sets out minimum terms and conditions of employment relating to an industry
batch
Type of production of a limited number of identical products. Every item in the batch is completed at each stage before they all pass on to the next stage of production
benchmark
A level of quality or achievement used as a standard of comparison for others
bureaucracy
Complex hierarchical management structure based on clear division of labour, downward communication, centralised decision-making line management and narrow span of control
capacity
Volume or potential ability to produce a certain amount of product
capital
Funds invested in a business which form one of the main inputs for the production process
Centralised
Type of decision-making where management make the decisions and pass on directions to those below
Centralised system of employee relations
5 word term - where awards (pay and working conditions) were determined by a central body relating to an industry
Certified
Enterprise bargaining agreement which results from negotiations between an employer and union and is registered and ratified by the AIRC
change
Any alteration to an organisation and/or its work environment
Chief Executive Officer
3 word term - the most senior management position in the organisation
code of conduct
3 word term - generally short and specific rules and guidelines laying out specific do's and don'ts - about unacceptable conduct
collective bargaining
The process by which wages hours, rules and working conditions are negotiated and agreed upon by a union with an employer for all the employees collectively
communication
A process of creating and exchanging information between people that produces the required response
computer aided design
A computer program that facilitates the creation and modificationof product design
absenteeism
Habitual absence from work
conciliation
Any of various forms of mediation whereby disputes may be settled short of arbitration
corporate culture
The set of values, norm, and beliefs that influence the behavior of everyone in the organization
corporate social responsibility
The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization
customer
Someone who pays for goods or services
customer satisfaction
The extent to which a product's perceived performance matches a buyer's expectations
debt to equity ratio
Comparison of level of debt to owner's equity
decision making
The process of evaluating alternatives and making choices among them. Usually involves a six step approach
delegation
Authorizing subordinates to make certain decisions
driving forces
Those forces affecting a situation that are pushing in a particular direction and are supporting the goal or proposed change
economies of scale
The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase
efficiency
Using resources in such a way as to maximize the production of goods and services
effectiveness
The degree to which the organization achieves a stated goal
employees
People who work for someone else.
employee relations
The relationship between employees and employers encompassing all aspects of their working lives including wages and conditions
employment cycle
The entire process from human resource planning to termination of the employment contract
empowerment
The delegation of power and authority to subordinates
enterprise bargaining
This refers to negotiations between employers and employees (or their representatives) about pay and work conditions at the level of the individual firm.
equal employment opportunity
The absence of employment discrimination based on race, color, religion, sex, or national origin.
ethics
A set of moral principles that an organisation needs to follow
facility layout
The physical layout of a work environment, eg factory, shop, office
fixed position layout
The product remains in a fixed position with the required resources take to the product
flexible work practices
Flexible practices that allow employees to balance work and family responsibilities
force field analysis
The process of determining which forces drive and which resist a proposed change
front-line manager
Lowest level of managers in the hierarchy. Responsible for the work of operating employees only and does not supervise other managers
functional structure
A form of traditional organisational structure which is based on the functions performed, eg finance, marketing ...
Goal Setting Theory
A process theory of motivation that focuses on the process of setting and attaining goals
Government business enterprise GBE
Businesses which are government owned and operated.
Gross Domestic Product GDP
The dollar amount of all final goods and services produced within a country's borders in a year.
Human resource management HRM
The management of a wide rand of responsibilities relating to the human (employees) function within a business, in order to increase both the employees' and organisational efficiency
induction
The process of introducing new workers to their place of work, their job role, their colleagues, supervisors, management and corporate culture
inputs
Resources such as raw materials, labour, plant, equipment, capital information used in any organisatinal production system
internal environment
Activities, functions and pressures which occur within an organisation over which they have control
interpersonal skills
Skills used by a manager when dealing with people on a personal basis such as being able to lead, motivate, communicate, manage conflict and build team rapport
inventory
The holding or storage of raw materials, component parts, work in progress and finished goods
inventory control
System of overseeing the contents of an inventory; usually involves maintaining correct levels of stock as well as averting stock loss and theft
job analysis
Systematic process of gathering information relating to a job being performed
job description
A written description of a job's title, duties and responsibilities
job rotation
Workers are moved between different jobs to increase variety of work and to create a flexible workforce
job satisfaction
The degree to which employees have positive attitudes about teir jobs
Just in Time JIT
An inventory management system (usually a software program such as MYOB) which aims to avoid holding any stocks. Supplies arrive just as needed for production.
Key Performance Indicators KPIs
A set of measures that helps a company determine if it is reaching its performance and operational objectives. Indicators can be financial or non-financial
Laissez-faire management style
A leadership style which leaves the majority of decision making and running the business operation to the employees
leadership
Defined as one's ability to get others to willingly follow
log of claims
List of demands put forward by employees (union) to the employers relating to pay and working conditions. The employer will respond with its own counter log of claims
low-risk tatics for change
Participative approach to implementation of change, use of communication, empowerment, work groups and support for those who are impacted
macro environment
Broad operating conditions in which an organisation operates and over which it has no control
management
The process of planning organising, leading and controlling the work of subordinates to achieve organisational goals. Getting work done through other people.
market share
Percentage or share of the market held by and organisation based on sales revenue
Maslow's Hierarchy of Needs
Theory of motivation that people are motivated to meet five types of needs, which can be ranked in a hierarchy
Master Production Schedule MPS
Sets out what is to be produced and when it is to be produced
Materials Requirement Planning MRP
Itemised list of all materials required to meet production needs
matrix structure
A structure that places managers and employees into project teams that cut across functional or departmental lines and requires them to report to both functional and task management
merger
An agreement between two or more organisations to join together to form one united business
mission statement
A global statement that reflects an organisation's reason for being or purpose and the way it will be managed
motivation
The desire or drive to work well. Process of ensuring that there is continuing commitment to a common set of goals or a single goal
multiskilling
Equipping employees with a variety of job skills to increase their flexibility
negotiation
The process by which one party seeks to obtain something it wants from another party eg employee seeking pay increase from employer
not-for-profit organisation
An organisation formed with the purpose of assisting in the areas such as health provision, social welfare or community infrastructure
objectives
Targets or outcomes that an organisation aims to achieve
occupational health and safety
Providing a safe and healthy work environment
operational planning
Detailed short-term planning undertaken by an organisation
operations management
Management of resources to achieve efficient output of goods or services
outsourcing
Process of using another business to undertake some task or work process
participative management style
Management style (democratic) which shares decision making as a team with management and staff working together
performance appraisal
Determining how well employees have performed their jobs, providing feedback to employees and establishing plans to improve performance
persuasive management style
Managers make the decisions then persuade workers of the benefits of those decisions
picket line
Industrial action involving workers physically demonstrating outside work premises, often preventing deliveries and labour entering the work site
planning
Planning is a formalised procedure to produce a set of integrated systems of decisions
policy
Written statement of the processes and procedures, rules and regulations
private company
A company where the shareholding is limited (small) with shares being sold privately. Often run as a family business. Has the words 'proprietory limited' at the end of the company name
proactive
Using initiative to gain an opportunity, acting in anticipation
problem solving
The systematic approach to finding and implementing a course of action to correct and unsatisfactory situation
process layout
Production layout where pieces of equipment with like function are grouped together
product
End result of production process. Can be either a good or a service
product layout
Equipment is used for a single purpose along a production flow line. the product progresses along the line in a continuous flow. Suitable for mass production
Transformantion process
The process of transforming resource inputs into finished goods and services
productivity
A measure of the functioning and efficiency of a production system. The level of output obtained from a set level of input.
profit
The amount remaining after deducting the operating expenses of running a business from the revenue received by the business
profitability
An indicator or measure of performance based on profit, used to evaluate the ongoing success of a business
public company
An incorporated business (company) which has the leagal right to offer shares for sale to the public. Shares are listed on the stockmarket.
public sector
That part of the economy operated by the government
quality
The degree of excellence in a good or service and its ability to satisfy the customer
quality assurance
A system established to ensure that predetermined quality standards are achieved
quality control
Process of checking the quality standards of work done or quality of raw materials or component parts
recruitment
The process of finding the best qualified pool of applicants
redundant
An employee is redundant when there is no longer sufficient work for the worker to perform
remuneration
The amount a person is compensated (paid) for performing work tasks (job). It can take the form of cash and/or fringe benefits.
research and development
Scientific research and technical development of new products and/or processes
resources
Inputs used in production: land, natural resources, labour, entrepreneurial skills, capital and technology
restraining forces
Forces acting to restrain or decrease the driving forces for change. these may include staff resistance, cost, poor maintenance of equipment
retirement
Voluntary termination where an employee decides to leave the paid work force.
retrenchment
The expression used to describe what occurs to an employee whose employment is terminated by reason of his or her job becoming redundant.
robotics
The use of computer-controlled Robots to perform manual tasks, especially on an assembly line, replacing functions previously performed by human labour
salary
An agreed amount of money paid to employees for their labour during a year. Expressed as an amount per annum.
selection
Process undertaken by an organisation to decide whether to make a job offer to a candidate.
self actualisation
The sense of self-fulfillment or highest level of human needs - Maslow's hierarchy of needs
senior management
The level of management involved in the strategic planning and decision making of an organisation.
skills
The ability to do something well, gained through training and experience
social responsibility
Accountability of a business towards its stakeholders. the idea that businesses should contribute to the welfare of their communities
staff turnover
Number of employees leaving an organisation in a given period of time.
stakeholder
Individual or group that has a direct or vested interest in the activities of an organiation.
stocktake
Physical counting of stock (inventory)
stop work meeting
Industrial action involving employees meeting during working hours and thus stopping work.
strategic planning
Long-term (2 to 5 years) planning undertaken by senior management to achieve corporate objectives.
strategy
Long-term plan of ACTION which aims to achieve a specific objective.
strike
The deliberate withdrawal of labour from the production process.
supplier
Supplies the inputs (resources) required for the production process.
SWOT analysis
An assessment of the internal Strengths ans Weaknesses and the external Opportunities and Threats for an organisation in a given situation.
tactical planning
Planning undertaken by middle-level management to assist in implementing strategic decisions. It's time frame is medium term (1 to 2) years.
takeover
The means by which an organisation becomes larger by purchasing a controlling share (at least 50.1%) in another business.
teamwork
When a group works together to complete a task. It requires workers to be multi-skilled and allows for worker empowerment.
termination
Ending the employment relationship.
time management
The efficient utilisation of work time which involves setting and prioritising tasks, allocating time and avoiding time-wasting activities. It is a skill.
total quality managment
Concept whereby all staff in an organisation are responsible for quality. Utilises teams to drive continuous improvement and incorporates quality control and quality assurance.
Trade union
An organisation formed to represent and protect the rights of workers in a particular industry.
training
The process of providing an employee with the knowledge of specific skills needed to do a job.
transformation
The process involved in converting inputs into outputs.
triple bottom-line
Where an organisation reports on the social outcomes and environmental impacts of its activities, as well as its financial prformance.
unfair dismissal
Dismissal of staff that does not follow agreed legal procedures. Employees may seek to be compensated or reinstated.
union collective agreement
A written agreement made between an employer(s) and a union(s), which sets out the terms and conditions of employment. An agreement may cover businesses run by more than one employer.
values statement
A statement which outlines what the organisation sees as its corporate values, eg integrity, honesty, reponsibility ..
vision statement
A statement that outlines the aspirations of the organisation (aims for the future).
voluntary termination
When an employee decides to leave an organisation either by resigning to go to another position, or retirement from the paid work force.
wage
The monetary reward for labour, paid on a weekly basis, calculated by multiplying the hourly rate with the number of hours worked for the period.