Topic 2 Key Terms

Question 1

ageing population

Answer 1

a demographic change that tends to
occur in high-income countries, with the average age of the
population getting higher. An ageing population has many implications for human
resource management

Question 2

Demography

Answer 2

the statistical study of population characteristics, using data such as birth rates, death rates, ageing populations and net migration rates.

Question 3

Flexitime

Answer 3

a system that enables workers to have a degree
of autonomy to determine when they work, so long as they
complete their work by set deadlines.

Question 4

gig economy

Answer 4

refers to labour markets where workers are typically on short-term, temporary contracts or carry out
freelance work as independent contractors,

Question 5

Homeworking

Answer 5

an aspect of flexitime whereby people work from their own homes.

Question 6

Human resource management (HRM)

Answer 6

refers to the role
of managers in planning and developing the organization’s
people. This is done through interrelated functions such as the
recruitment and selection, as well as training and development
of employees.

Question 7

Human resource planning (or workforce planning)

Answer 7

the management process of forecasting an organization’s current and future staffing needs,

Question 8

Migrant workers

Answer 8

people who move to other countries in search of better job prospects and opportunities.

Question 9

mobility of labour

Answer 9

the extent to which workers are
flexible enough to move to different locations (geographical
mobility) and/or their flexibility in changing to different jobs
(occupational mobility).

Question 10

Net migration

Answer 10

measures the difference between the number of workers entering a country (immigration) and the number of people leaving (emigration).

Question 11

Portfolio workers

Answer 11

those who simultaneously carry out a number of different jobs, often for various contractors, usually
on a temporary basis.

Question 12

Teleworking

Answer 12

refers to working away from the office by using electronic forms of communication, such as telephones, the Internet and email.

Question 13

Workforce

Answer 13

refers to the number of employees at any one point in time for a particular organization,

Question 14

Accountability

Answer 14

describes the extent to which a person is held responsible for the success or failure of a task or job. It allows senior managers to have better control over the running of their organizations.

Question 15

Bureaucracy

Answer 15

the official administrative and formal rules of an organization that govern business activity. It involves
prescribed rules and policies, standardized procedures and
formal hierarchical structures.

Question 16

Centralization

Answer 16

occurs when the majority of decision making is done by a very small number of people (usually the senior leadership team) who hold decision-making authority and
responsibility.

Question 17

Chain of command

Answer 17

refers to the formal line of authority, shown in an organization chart, through which formal
communications and orders are passed down.

Question 18

Decentralization

Answer 18

occurs when decision making authority and responsibility are shared with others in the organization,

Question 19

Delayering

Answer 19

the process of removing levels in the hierarchy to flatten the organizational structure, thereby widening the span of control in the hierarchy.

Question 20

Delegation

Answer 20

the empowerment of a person lower down in the organizational structure by passing on control and decision-making authority to complete a certain task or role.

Question 21

A flat (or horizontal) organizational structure

Answer 21

means that there are only a few layers in the formal hierarchy and hence managers have a relatively wide span of control.

Question 22

hierarchy

Answer 22

hierarchy in a business refers to the organizational structure based on a ranking system. Each hierarchical level refers to a different rank with its associated degree of authority
and responsibility.

Question 23

Levels of the hierarchy

Answer 23

refer to the number of layers of formal authority in an organization, The number of levels is shown in
an organization chart.

Question 24

Line manager

Answer 24

refers to the person directly above an employee in the organizational structure.

Question 25

Managers

Answer 25

the people responsible for the day-to-day running of the business or a department within the organization.

Question 26

matrix structure

Answer 26

refers to a flexible type of organizational structure of representatives from different departments, temporarily working together on a particular project or job.

Question 27

Organization by function

Answer 27

refers to structuring a workforce according to business functions, ie. specialized roles or tasks such as marketing or finance and accounts.

Question 28

Organization by product

Answer 28

refers to structuring a workforce according to the goods or services produced or sold, Each department focuses on a different product within the organization's overall product portfolio.

Question 29

Organization by region

Answer 29

refers to structuring a workforce according to different geographical areas, based on where the firm's operations are.

Question 30

Organization chart

Answer 30

a diagrammatic representation of a firm's formal structure of human resources.

Question 31

Organizational structure

Answer 31

refers to the formal interrelationships and hierarchical arrangements of human resources within a business.

Question 32

Outsourced workers

Answer 32

the individuals or organizations hired on a contract basis to carry out specific but non-core roles.

Question 33

Peripheral workers

Answer 33

the contingent workers consisting of part-time and temporary staff hired by the organization to provide greater flexibility.

Question 34

Professional core

Answer 34

the core workers consisting of full-time specialists (professionals) who are vital for the organization's operations and survival

Question 35

A project-based organization

Answer 35

arranges human resources around particular projects, each led by a project manager. Such structures allow increased flexibility to adjust quickly to market changes and to adopt rapid innovations.

Question 36

Responsibility

Answer 36

refers to who is in charge of whom and in what role or capacity. Roles and responsibilities can be seen in an organization chart.

Question 37

Span of control

Answer 37

refers to the number of subordinates overseen by a manager, ie. the number of people who are directly accountable to the manager.

Question 38

A tall (or vertical) organization structure

Answer 38

means that there are many layers in the hierarchy and hence managers have a narrow span of control,

Question 39

Autocratic leadership

Answer 39

refers to leaders who adopt an authoritarian approach by making all the decisions rather than delegating any authority to their subordinates. Instead, the autocratic leader simply tells others what to do.

Question 40

Democratic leadership

Answer 40

refers to the leadership approach that considers the views of others when making decisions. This participative leadership style means that decision-making is decentralized.

Question 41

Functions of management

Answer 41

refers to the roles of managers, namely the planning, organizing, commanding, coordinating and controlling of business operations,

Question 42

Intuitive thinking and management

Answer 42

are based on personal beliefs, perceptions and instincts or gut feelings. This approach to management and leadership considers issues that are not necessarily quantifiable.

Question 43

Laissez-faire leadership

Answer 43

is an approach based on having minimal direct input into the work of employees. Instead, laissez-faire leaders allow subordinates to make their own decisions and to complete tasks in their own way.

Question 44

Shamrock Organisation

Answer 44

organisations are increasingly made up of core staff who are supported by peripheral workers and outsourced workers (consisting of consultants and contractors)

Question 45

Leadership

Answer 45

the skill of getting things done through other people by inspiring, influencing and invigorating them to achieve organizational goals

Question 46

Leadership style

Answer 46

refers to the ways in which decision makers behave or reveal their behaviour. These styles or approaches are categorized as autocratic, paternalistic, democratic, laissez-faire or situational,

Question 47

Management

Answer 47

the practice of achieving an organization's objectives by using and controlling the available human and non-human resources of the business in an effective way.

Question 48

manager

Answer 48

someone with decision-making authority within an organization and has responsibility for problem solving in order to achieve specific organizational goals,

Question 49

Paternalistic leaders

Answer 49

treat their employees as if they were family members, guiding them through a consultation process and acting in the perceived best interest of their subordinates.

Question 50

Situational leadership

Answer 50

refers to the approach that considers there is no single leadership style that suits all situations. The optimal style depends on situational factors, such as the attitudes, behaviour, and competencies of managers and workers.

Question 51

360-degree appraisal

Answer 51

involves collecting evidence about the appraisee's job performance from a range of stakeholders who work with the employee.

Question 52

appraisal

Answer 52

the formal assessment of an employee's performance in fulfilling his or her job based on the tasks and responsibilities set out in their job description.

Question 53

Commission

Answer 53

a type of financial reward that pays workers a certain percentage of the sale of each good or service that they are responsible for.

Question 54

Differentiated piecework

Answer 54

an incentive scheme that rewards more productive workers who exceed a pre-determined benchmark.

Question 55

Division of labour

Answer 55

the process of breaking down different aspects of a job or task and assigning different people to each particular part of the work in order to improve efficiency and output,

Question 56

Empowerment

Answer 56

a non-financial motivator that involves developing the potential of workers or teams by granting them the authority to make decisions and to execute their own ideas to solve business problems.

Question 57

Employee share ownership schemes

Answer 57

a type of payment system that rewards staff by giving them shares in the company or by selling the shares at a discounted price.

Question 58

Equity theory

Answer 58

suggests that people make comparisons of perceived fairness in the workplace based on the ratio of their input (effort) to output (rewards).

Question 59

Esteem needs

Answer 59

Maslow's hierarchy of needs refers to the desire of people to feel respected, having value and having self- respect.

Question 60

External recruitment

Answer 60

the process of hiring people from outside the business.

Question 61

Formative appraisal

Answer 61

the planned and ongoing process in which data and evidence are used to inform employees about what to do to improve their work practices.

Question 62

Fringe payments

Answer 62

financial rewards paid in addition to a worker's wages or salaries, such as subsidised meals, housing allowance and pension fund contributions.

Question 63

Herzberg’s motivation-hygiene theory

Answer 63

looked at factors that must be met in order to prevent dissatisfaction and the factors that actually motivate employees.

Question 64

Hierarchy of needs

Answer 64

refers to A. Maslow’s theory of motivation, that people are motivated by different levels of needs: physiological, safety, social, esteem and self-actualization.

Question 65

Hygiene factors

Answer 65

are parts of a job that PF. Herzberg referred to that do not increase job satisfaction but help to remove dissatisfaction, such as reasonable wages and working conditions.

Question 66

Induction training

Answer 66

a type of training aimed at introducing new employees to the organization.

Question 67

Internal recruitment

Answer 67

involves hiring people who already work for the business to fill a vacant post.

Question 68

Job enlargement

Answer 68

refers to increasing the number of tasks that an employee performs, thereby reducing or eliminating the monotony of repetitive tasks.

Question 69

Job enrichment

Answer 69

involves giving workers more responsibilities and more challenging jobs.

Question 70

Job rotation

Answer 70

a form of job enlargement whereby workers are piven different tasks, but of the same level of complexity, to help reduce the problems associated with repetitive tasks.

Question 71

Labour turnover

Answer 71

measures the percentage of the workforce that leaves the organization in a given time period, usually one year,

Question 72

Maslow’s hierarchy of needs

Answer 72

outlines five levels of needs, from satisfying physiological needs to self-actualization, Lower order needs must be met before people progress up the hierarchy.

Question 73

Motivation

Answer 73

refers to the desire, effort and passion to achieve something. It is the willingness to complete a task or job with intent and purpose.

Question 74

Motivators

Answer 74

the factors that F Herzberg considered to increase job satisfaction and motivation levels, such as praise and recognition.

Question 75

Movement

Answer 75

according to F Herzberg, occurs when people do something because they need to, so they feel obliged to do so.

Question 76

Expectancy theory

Answer 76

Assumes that people behave in a certain way in exchange for rewards based on their conscious expectations. V. Vroom argued that people only put in the effort to do a job if they expect that their role will help to achieve the required result

Question 77

national minimum wage

Answer 77

the lowest hourly pay that all firms must remunerate their workers, as stipulated by the government.

Question 78

Non-financial rewards

Answer 78

are non-monetary factors that motivate people by offering psychological and intangible benefits, i.e. factors not directly linked to money.

Question 79

Off the job training

Answer 79

refers to training conducted off-site, such as ata tertiary college or hotel conference centre.

Question 80

On the job training

Answer 80

refers to training carried out whilst at the workplace. For example, the training can be delivered by a manager, supervisor or other specialist.

Question 81

Performance-related pay (PRP)

Answer 81

a payment system that rewards people who meet set targets over a period of time, The targets can be on an individual, team or organizational basis,

Question 82

Piece rate

Answer 82

a payment system that rewards people based on the amount that they produce or sell. Thus, their pay is directly linked to their level of productivity.

Question 83

Physiological needs (or basic needs)

Answer 83

in Maslow’s hierarchy of needs are the requirements for human survival, including food, water, shelter and warmth.

Question 84

Productivity

Answer 84

measures the level of output per worker. It is an indicator of motivation as employees tend to be more productive with increased levels of motivation,

Question 85

Profit-related pay

Answer 85

a type of financial reward system which remunerates workers a certain percentage or amount of the annual profits that the firm earns.

Question 86

Purpose

Answer 86

a non-financial reward, refers to the opportunity to make a difference.

Question 87

Remuneration

Answer 87

means the overall compensation package, such as salaries, commission, profit-related pay, performance-related pay, share ownership schemes and fringe benefits.

Question 88

Safety needs (or security needs)

Answer 88

in Maslow’s hierarchy of needs are the requirements that make people feel safe, such as job security.

Question 89

Salary

Answer 89

a type of financial payment that rewards workers a fixed annual amount of money, usually paid per month,

Question 90

Scientific management,

Answer 90

developed by FW. Taylor, suggests that specialisation and division of labour help to increase the level of productivity. This is especially the case if pay is linked to a piece-rate reward system.

Question 91

Self-actualization

Answer 91

in Maslow’s hierarchy of needs refers to the highest level of needs, which occurs when people became the very best that they can be and fulfil their potential.

Question 92

Self-appraisal

Answer 92

involves employees appraising themselves based on a set of pre-determined criteria.

Question 93

Self-determination theory,

Answer 93

coined by E. Deci and R. Ryan, describes three core requirements that facilitate growth and motivation in people: autonomy, competence and relatedness.

Question 94

Social needs (or love and belonging needs)

Answer 94

in Maslow’s hierarchy of needs refers to the requirement to be accepted by others.

Question 95

Asummative appraisal

Answer 95

a written description of an employee's performance at work, summarizing what s/he has done and achieved during given period of time, usually a year.

Question 96

Teamwork

Answer 96

a form of non-financial motivation, which involves the combined efforts of a group of workers to achieve organizational goals.

Question 97

Time rate

Answer 97

a payment system that rewards staff for the time (rather than output) that they put into work, It is expressed per period of time, ¢.g. $10 per hour or $5,000 per month,

Question 98

Training

Answer 98

the process of providing opportunities for workers to learn and acquire employment-related skills and knowledge.

Question 99

Wages

Answer 99

a type of financial reward payment system based on time or output. Wages are paid as time rate (hours) or piece rate (output).

Question 100

Open channels of communication

Answer 100

used when information is not confidential and can be shared by anyone.

Question 101

Restricted channels of communication

Answer 101

are used when information is confidential and is directed only to those who need to know.

Question 102

Verbal communication (or oral communication)

Answer 102

refers to communication via the use of spoken words, such as meetings, interviews and appraisals,

Question 103

Videoconferencing

Answer 103

a communication method that allows communications to take place via telecommunications networks. The parties can see and hear each other using videoconferencing hardware and software technology.

Question 104

Visual communication

Answer 104

the use of visual stimuli to communicate information or ideas.

Question 105

Written communication

Answer 105

refers to communication methods that make use of the written word, such as letters, memoranda, reports and notices.

Question 106

Barriers to communication

Answer 106

refer to anything that can limit or impede the effectiveness of communications, thereby leading to information failure. Examples include jargon, ignorance, internal politics and computer failure.

Question 107

The channel of communication

Answer 107

refers to the method(s) through which communications take place between the sender and recipient.

Question 108

Communication

Answer 108

the transfer of information between different people and between organizations.

Question 109

Electronic mail

Answer 109

refers to the process of using computer wide area networks (WAN) as a mailing system for communication purposes.

Question 110

External communication

Answer 110

conducted between members of one organization and members of another.

Question 111

Formal communication

Answer 111

refers to the official and established channels of communication.

Question 112

Grapevine communication

Answer 112

covers all aspects of communication through unofficial (informal) channels.

Question 113

Jargon

Answer 113

is specialist or technical language used to speed up communication,

Question 114

Informal communication (or grapevine communication)

Answer 114

refers to unofficial, natural and unstructured channels of communication, naturally established by people from within an organization.

Question 115

Information overload

Answer 115

the excessive amount of information being passed onto staff, Le. swamping workers with too much communication. This can increase workload and stress.

Question 116

Internal communication

Answer 116

refers to communications within the business organization.

Question 117

Internal politics

Answer 117

refers to conflict between people within an organization.

Question 118

Non-verbal communication

Answer 118

is any form of communication other than oral communication, such as electronic systems (such as email), written methods (such as letters) and visual stimulus (such as body language).