Chapter 7 Glossary Terms

Question 1

Revenue

Answer 1

Revenue is what the business receives in the normal course of trading or operating, including sales fees, interest dividends royalties and rent.

Question 2

Expenses

Answer 2

Expenses are what it has cost the business to provide its services or sell its products.

Question 3

Human Resource Management

Answer 3

Human resource management is defined as the effective management of the formal relationship between the employer and employees.

Question 4

Employment Cycle

Answer 4

The employment cycle covers all stages in the process of employing staff, from initial planning through recruitment, selection, induction, performance management, and eventual termination of employment

Question 5

Human Resource Planning

Answer 5

Human resource (HR) planning is the development of strategies to meet the business’s future human resource needs.

Question 6

E-business

Answer 6

e-business is the use of the internet to conduct the full range of business activities.

Question 7

Job Analysis

Answer 7

Job analysis is the study of an employee’s job in order to determine the duties performed, the time involved in each of those duties, the responsibilities involved and the equipment required.

Question 8

Job Description

Answer 8

A job description is a summary of what the worker will be doing — the role they will have in the business in terms of duties and responsibilities

Question 9

Job Specification

Answer 9

A job specification will indicate the sort of person the business is seeking in terms of personal qualities, skills, education and work experience.

Question 10

Job design

Answer 10

Job design details the number, kind and variety of tasks that individual employees perform in their jobs.

Question 11

Recruitment

Answer 11

Recruitment is the process of attracting qualified job applicants — by using advertisements, websites, employment agencies and word of mouth — from which to select the most appropriate person for a specific job.

Question 12

Internal Recruitment

Answer 12

Internal recruitment involves filling job vacancies with present employees, rather than looking outside the business.

Question 13

External Recruitment

Answer 13

External recruitment involves filling job vacancies with people from outside the business.

Question 14

Employee selection

Answer 14

Employee selection involves choosing the candidate who best matches the business’s requirements.

Question 15

Full-time Employment

Answer 15

Full-time permanent employees have an ongoing employment contract which includes all legally required entitlements.

Question 16

Part-time permanent employment

Answer 16

Part-time permanent employment involves working fewer ordinary weekly or monthly hours compared with full-time employment.

Question 17

Fixed-term contract

Answer 17

A fixed-term contract is where employment is offered for a specific period.

Question 18

Casual employees

Answer 18

Casual employees are employed on an hourly basis.

Question 19

Superannuation

Answer 19

Superannuation is a system by which contributions are made to a fund which will provide benefits to an employee after retirement.

Question 20

Award

Answer 20

An Award is a legally binding agreement that sets out minimum wages and conditions for a group of employees.

Question 21

Enterprise Bargaining Agreement

Answer 21

An enterprise bargaining agreement (EBA) is an agreement that has been directly negotiated between the employer and employees of a business or enterprise.

Question 22

Penalty rates

Answer 22

Penalty rates are additional wages paid to employees who are required to work outside of normally accepted working hours.

Question 23

Productivity

Answer 23

Productivity is a measure of business efficiency, and compares the output produced by the business with the quantity of inputs (equipment, labour and materials) required to produce that output.

Question 24

Remuneration

Answer 24

Remuneration is monetary payment in return for the work an employee performs.

Question 25

Wage

Answer 25

A wage is an hourly or weekly rate of pay.

Question 26

Salary

Answer 26

Employees who earn a salary are paid a fixed amount each year, which is then divided by 26 to give a fortnightly salary, or by 12 to give a monthly salary.

Question 27

Salary Sacrifice

Answer 27

Salary sacrifice is forgoing salary in order to receive another non-cash benefit of equivalent value.

Question 28

Flexible working conditions

Answer 28

Flexible working conditions are conditions that allow employees to balance work and family responsibilities more effectively.

Question 29

Work-life balance

Answer 29

Work-life balance is about achieving the right amount of time for work and for personal or family life.

Question 30

Job security

Answer 30

Job security is the belief that the employee will not lose their job.

Question 31

Legislation

Answer 31

Legislation is a law made by parliament.

Question 32

Mediation

Answer 32

Mediation is a means of settling disputes in which a neutral third party assists the parties to reach a mutually acceptable agreement.

Question 33

Conciliation

Answer 33

Conciliation is a process involving a third party who assists the parties to reach agreement. It differs from mediation in that a conciliator is able to suggest solutions to the parties.

Question 34

Induction

Answer 34

Induction is a process of acquainting new employees with the business — its history, structures, objectives, culture, policies and practices — and the jobs they will perform.

Question 35

Visa

Answer 35

A visa is an official authorisation for an overseas visitor to enter a country and remain there for a specific period.

Question 36

Nepotism

Answer 36

Nepotism occurs when a family member is favoured for a position.

Question 37

Affirmative action

Answer 37

Affirmative action refers to measures taken to eliminate discrimination and to implement positive steps to overcome current and historical lack of equal opportunity.