Bonus

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

Commission

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

Profit Sharing

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

Contract of employment

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

Democratic management

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

Dismissal

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

Diversity and equality policies

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

Empowerment

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

External recruitment

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

Fringe benefit

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

Functions of management

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

Herzberg's Hygiene Factors

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.

Induction training

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

Internal recuitment

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

Job description

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

Job enrichment

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

Job Redesign

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

Labour productivity

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

Labour turnover

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

Lassez-Faire management

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

Legal Minimum Wage

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

Maslow's Hierarchy of needs

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

Mayo

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

McClelland/Vroom Expectancy Theory

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

McGregor's management Roles

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.

Mintzberg's Roles of Management

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

Motivation

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

Off the job training

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

On the job training

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

Performance Related Pay

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

Person specifications

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

Recruitment and Selection

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

Redundancy

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

Salary

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

Span of control

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

Staff morale

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

Taylor

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.

Team working

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

Trade Union

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

Training

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

Unfair dismissal

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

Wages

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

Worker participation

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

Employment Agencies

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

Online Recruitment

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

Multiskilling and flexibility

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

Trade Union

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

Collective Bargaining

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

Human Resource Management (HRM)

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

Appraisal

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

Job Analysis

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

Workforce Planning

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

Flexible Employment Contracts

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

Core and Peripheral Workers

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

Outsourcing

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

Piece Rate

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

Job Rotation

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

Delegation

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

Chain of Command

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

Trade Union Recognition

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

Absenteeism Rate

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