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Cambridge AS Business (9609) Flashcards - Unit 2: Human Resource Management

front 1

Bonus

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A financial reward given to employees for achieving specific performance targets or exceptional work.

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Commission

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A payment based on a percentage of the value of sales made by an employee, often used as an incentive in sales roles.

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Profit Sharing

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A system where employees receive a portion of the company’s annual profits, typically in addition to their regular salary.

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Contract of employment

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A legally binding agreement outlining the terms and conditions between an employer and employee, including duties, rights, and responsibilities.

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Democratic management

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A leadership style where managers involve employees in decision-making through two-way communication and consultation.

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Dismissal

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The termination of an employee’s contract due to poor performance, misconduct, or violation of company policies.

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Diversity and equality policies

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Guidelines and practices a business adopts to prevent discrimination and promote an inclusive, respectful working environment for all employees.

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Empowerment

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Granting employees the authority and responsibility to make decisions and take initiative within their roles.

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External recruitment

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The process of hiring a candidate who is not currently employed by the business, typically through job advertisements or recruitment agencies.

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Fringe benefit

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A non-monetary reward given to employees in addition to their wage or salary, such as a company car, private healthcare, or subsidised meals.

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Functions of management

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The key roles of management: planning, organising, commanding, coordinating, and controlling business activities and resources.

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Herzberg's Hygiene Factors

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Aspects of a job that do not motivate employees directly but must be present to prevent dissatisfaction, such as pay, working conditions, and company policies.

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Induction training

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Initial training provided to new employees to help them adjust to the workplace, including orientation on procedures, policies, and colleagues.

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Internal recuitment

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The process of filling a vacancy by appointing someone already employed by the business, typically from a different role or department.

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Job description

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A written statement outlining the main duties, responsibilities, and scope of a specific job role.

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Job enrichment

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The practice of giving employees more responsibility and challenging tasks to enhance their skills, motivation, and job satisfaction.

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Job Redesign

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Reorganising the tasks, duties, and responsibilities of a job to make it more motivating, meaningful, or efficient for the employee.

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Labour productivity

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A measure of output per worker, calculated by dividing total output by the number of workers.

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Labour turnover

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The percentage of employees leaving a business over a period, usually one year, expressed as a proportion of the total workforce.

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Lassez-Faire management

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A leadership style where managers provide minimal guidance and allow employees to make most decisions and take responsibility.

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Legal Minimum Wage

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The lowest hourly, daily, or monthly wage that employers are legally allowed to pay workers, as set by the government.

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Maslow's Hierarchy of needs

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A motivational theory that ranks human needs in a five-level pyramid, from basic physiological needs to self-actualisation.

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Mayo

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A motivational theorist who emphasised the importance of teamwork, communication, and employee involvement in decision-making to boost morale and productivity.

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McClelland/Vroom Expectancy Theory

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A motivational theory linking the likelihood of an employee putting in effort to the expected reward, based on valence, expectancy, and instrumentality.

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McGregor's management Roles

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A theory describing two contrasting views of workers: Theory X assumes workers are lazy and need supervision; Theory Y assumes they are self-motivated and enjoy responsibility.

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Mintzberg's Roles of Management

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Ten roles grouped into interpersonal, informational, and decisional categories that managers perform to effectively lead an organisation.

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Motivation

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The internal or external drive that encourages employees to work hard and perform well to achieve business goals.

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Off the job training

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Training conducted away from the workplace, such as at a college or external training centre.

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On the job training

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Training carried out within the workplace while the employee performs their job, guided by a more experienced colleague.

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Performance Related Pay

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A financial reward system where employees receive additional pay based on their work performance or achievement of targets.

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Person specifications

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A detailed description of the qualifications, experience, skills, and personal attributes required from a candidate for a specific job.

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Recruitment and Selection

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The process of attracting, identifying, and choosing the most suitable person for a job vacancy.

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Redundancy

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When a job position is no longer required, resulting in the employee losing their role — for example, due to factory closure or restructuring.

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Salary

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A fixed regular payment to an employee, usually paid monthly, not based on hours worked.

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Span of control

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The number of subordinates directly reporting to a manager or supervisor.

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Staff morale

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The overall attitude, satisfaction, and outlook of employees toward their work and workplace.

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Taylor

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A management theorist who believed that workers are motivated by money and that efficiency improves when tasks are broken down and employees are closely supervised.

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Team working

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A group of employees collaboratively responsible for completing a task, project, or departmental objectives.

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Trade Union

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An organisation representing employees, aiming to protect and improve their pay, conditions, and rights.

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Training

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The process of developing employees’ skills and knowledge so they can perform their roles more effectively.

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Unfair dismissal

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The termination of an employee’s contract without a fair or legal reason, often in breach of employment law.

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Wages

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A regular payment to employees based on hours worked or output produced, usually paid weekly.

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Worker participation

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Processes that allow employees to have a say or influence in decision-making and working conditions within the organisation.

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Employment Agencies

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Organisations that help job seekers find employment and assist employers in filling vacancies by matching them with suitable candidates.

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Online Recruitment

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The process of using internet-based tools and platforms to advertise job vacancies and attract potential candidates.

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Multiskilling and flexibility

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Training employees to perform multiple roles or tasks, enabling the business to respond quickly to changes in workload or staffing needs.

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Trade Union

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An organisation that represents employees in negotiations with employers to improve pay, working conditions, and legal rights.

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Collective Bargaining

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Negotiation between employers and a group of employees (often represented by a trade union) over pay, working conditions, and other terms of employment.

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Human Resource Management (HRM)

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The strategic approach to managing people in an organisation, including recruitment, training, performance management, and employee relations.

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Appraisal

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A formal assessment of an employee’s performance over a period of time, often involving feedback and setting future goals.

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Job Analysis

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A process that identifies and records the responsibilities, tasks, and skills required for a specific job.

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Workforce Planning

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The process of analysing and forecasting the number and type of employees needed to meet future business objectives.

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Flexible Employment Contracts

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Work agreements that offer flexibility in terms of working hours, locations, or conditions—such as part-time, remote, or zero-hour contracts.

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Core and Peripheral Workers

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Core workers are essential, permanent employees with long-term roles. Peripheral workers are part-time, temporary, or contract staff hired to provide flexibility.

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Outsourcing

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The practice of using external firms to perform business functions or services that are usually done in-house.

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Piece Rate

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A payment system where workers are paid based on the number of units they produce, rather than a fixed wage.

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Job Rotation

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A method of job design where employees switch between different tasks to increase variety and skills.

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Delegation

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The assignment of responsibility and authority to another person (typically a subordinate) to carry out specific activities.

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Chain of Command

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The formal line of authority within an organisation, showing who reports to whom.

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Trade Union Recognition

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An employer's formal acceptance of a trade union to represent its workers in negotiations and discussions.

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Absenteeism Rate

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The percentage of employees who are regularly absent from work, often measured over a specific time period.