The "Comprehensive IGCSE Business Studies Definitions Handbook" is an indispensable resource designed to support students, in mastering the fundamental concepts of business studies at the IGCSE level. It covers Section 2 of the IGCSE syllabus
Section 2 revision keywords and questions
Key terms Definition
Motivation is the reason why employees want to work hard and work
Motivation
effectively for the business.
Labour
labour turnover refers to the number of workers that quit their job
turnover
Taylor’s
Taylor based his ideas on the assumption that all individuals are motivated by
Scientific
personal gain and therefore, if they are paid more, they will work more
Management
effectively.
Theory
According to Herzberg, humans have two sets of needs; one is for the basic
Herzberg’s Two needs, which he called ‘hygiene’ factors or needs, and the second is for a
Factor Theory human being to be able to grow psychologically, which he called
‘motivational’ needs or ‘motivators.
Maslow’s
hierarchy of
needs
Wages A wage is payment for work, usually paid weekly
Salary A salary is payment for work, usually paid monthly.
Piece
rate/piece Piece rate is an amount paid for each unit of output
work
A bonus is an additional amount of payment above basic pay as a reward for
Bonus
good work.
,Classification: Internal
8
Commission Commission is payment relating to the number of sales made.
Profit sharing is a system whereby a proportion of the company’s profits is
Profit share
paid out to employees.
Job enrichment involves looking at jobs and adding tasks that require more
Job enrichment
skill and/or responsibility.
Job rotation involves workers swapping around and doing each specific task
Job rotation
for only a limited time and then changing around again.
Fringe benefits are the additional benefits offered to an employee, above the
Fringe benefits
stated salary for the performance of a specific service.
Training Training is the process of improving a worker’s skills.
Promotion is the advancement of an employee in an organisation, for
Promotion
example, to a higher job/ managerial level.
Teamworking involves using groups of workers and allocating specific tasks
Team working
and responsibilities to them.
Delegation means giving a subordinate the authority to perform particular
Delegation
tasks.
Organisational
Organisational chart refers to a diagram that outlines the internal
chart
management structure.
Organisational
Organisational structure refers to the levels of management and division of
structure
responsibilities within an organisation.
Hierarchy Hierarchy refers to the levels of management in any organisation, from the
highest to the lowest.
The longer the chain of command, the ‘taller’ will be the organisational
Tall structure
structure and the ‘narrower’ the span of control.
When the chain of command is short, the organisation will have ‘flatter’ spans
Flat structure
of control.
Chain of
command
,Classification: Internal
9
Chain of command is the structure in an organisation which allows
instructions to be passed down from senior management to lower levels of
management.
The span of control is the number of subordinates working directly under a
Narrow span of
manager.
control
A narrow span of control would mean that there are a few numbers of
subordinates working directly under a manager
Wide span of A wide span of control would mean that there are many subordinates working
control directly under a manager.
Someone who has less power or authority than someone else : someone who
Subordinates
is subordinate to someone else.
Autocratic Autocratic leadership is where the manager expects to be in charge of the
leadership business and to have their orders followed.
Democratic
Democratic leadership gets other employees involved in the decision-making
leadership
process.
Laissez-faire Laissez-faire leadership makes the broad objectives of the business known to
leadership employees, but then they are left to make their own decisions and organise
their own work.
A trade union is a group of employees who have joined together to ensure
Trade union
their interests are protected.
Recruitment is the process from identifying that the business needs to
Recruitment employ someone up to the point at which applications have arrived at the
business
A job analysis identifies and records the responsibilities and tasks relating to
Job analysis
a job.
A job description outlines the responsibilities and duties to be carried out by
Job description
someone employed to do a specific job.
Job/person
A job specification is a document which outlines the requirements,
specification
qualifications, expertise, physical characteristics, etc., for a specified job.
Internal
Internal recruitment is when a vacancy is filled by someone who is an existing
recruitment
employee of the business.
External External recruitment is when a vacancy is filled by someone who is not an
recruitment existing employee and will be new to the business.
, Classification: Internal
10
Vacancy A vacancy arises when an employee resigns from a job or is dismissed by
the management
Shortlisting is the process of identifying the candidates from your applicant
Shortlisting pool who best meet the required and desired criteria for the open req and who
you want to move forward.
Full time
worker Full-time employees will usually work 35 hours or more a week
Part time
Part-time employment is often considered to be between 1 and 30–35 hours a
worker
week.
A CV is a summary of a person’s qualifications, experience and qualities, and
CV
is written in a standard format.
The most important employment issues affected by legal controls are Legal
controls over employment issues.
» Employment contracts
» Unfair dismissal
Legal controls
» Discrimination
» Health and safety
» Legal minimum wage
Induction Induction training is an introduction given to a new employee, explaining the
training business’s activities, customs and procedures and introducing them to their
fellow workers.
On-the-job
On-the-job training occurs by watching a more experienced worker doing the
training
job.
Off-the-job
Off-the-job training involves being trained away from the workplace, usually
training
by specialist trainers
Workforce Workforce planning is establishing the workforce needed by the business for
planning the foreseeable future in terms of the number and skills of employees
required.
Dismissal is when employment is ended against the will of the employee,
Dismissal
usually for not working in accordance with the employment contract.
Redundancy is when an employee is no longer needed and so loses their job.
Redundancy
It is not due to any aspect of their work being unsatisfactory.
Communication is the transferring of a message from the sender to the
Communication
receiver, who understands the message.
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