CAMBRIDGE AS LEVEL

BUSINESS 9609
UPDATED SYLLABUS 2023
REVISION
68 DEFINITIONS UNIT 2
HUMAN RESOURCE MANAGEMENT

Revision for students

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Management

Management focuses on using the available resources efficiently provided by the business to meet the business goals and
objectives

Planning

A management function where they plan business objectives or aims for the future. It may include planning for corporate
objectives, departmental objectives, or individual objectives of all staff within an organization

Organizing

A management function where they decide what resources will be needed to achieve the overall business objectives

Commanding

A management function where they guide employees in the right direction to work and what they are expecting from them so that
a business is able to achieve its objectives

Coordinating

A management function where they integrate different departments and individuals to complete their tasks so overall business
objectives can be achieved

Controlling

A management function that supervises that the business is in the right direction to meet its objectives; therefore it is necessary
to check progress and the extent to which targets are being met.

Employee morale

It is the positive attitude and job satisfaction of employees within a business. It makes employees loyal to the business.

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Interpersonal role

A management role identified by Mintzberg in his management theory where managers must have strong interpersonal skills to
deal with the people within an organization

Interpersonal skills

Skills required to effectively communicate, interact, and work with individuals and groups. Those with good interpersonal skills are
often considered to be “good with people”

Figurehead

The role of the manager in Mintzberg’s theory that explains a manager is expected to be a source of inspiration. People look up to
him/her as a person with authority and as a figurehead.

Liaison

The role of the manager in Mintzberg’s theory explains that a manager must communicate with internal and external contacts.
He/she needs to be able to network effectively on behalf of the organization

Management style

A way to deal with people in the organization that can impact the people working within that organization and can determine their
attitude to work, which in turn can influence the level of efficiency within the business

Autocratic management style

A management style where managers don’t involve their staff in company decisions. Communication flows from the top down (only
one way) and team members are expected to follow orders

Employee welfare

Employee welfare is defined as “efforts to make life worth living for workmen”. Employee welfare includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease,
accidents for the workers and their families
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Democratic management style

A management style where managers involve their staff in company decisions. Managers show their trust and respect for the input
of staff.

Laissez-faire management style

In the laissez-faire management style, managers are more like mentors. They’re available when employees need guidance, but
they often let employees make decisions on their own about how to move forward with projects.

Paternalistic management style

In a paternalistic management style, managers may listen and consult but will take decisions as ‘they know best and wise in
decision making’

Theory X and Theory Y

McGregor’s theory on management style shows the characteristics of employees working in an organization and how to deal with
the employees

Theory X

McGregor’s theory that explains employees do not like work and will avoid it if they can. They need to be told what to do and to be
closely supervised

Theory Y

A theory of McGregor that explains employees enjoy work and can derive job satisfaction from their work. Employees can be
creative and are willing to contribute ideas

Empowerment

A non-financial motivation method within an organization when someone is assigned decision-making power to perform the tasks in
his job

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Motivation

Motivation is a tool that managers use to encourage workers to work happily as hard as possible to achieve business objectives

Expectancy

Expectancy is the idea in V Room theory that increasing the amount of effort will increase performance (if I work harder then I will
perform better)

Instrumentality

Instrumentality is the idea in V Room theory that if you perform better, then the outcome will be achieved (If I perform well, I will
achieve the desired outcome)

Valence

Valence is the perceived value the employee puts on the outcome. For the valence to be positive, the person must prefer attaining
the outcome to not attaining it. (If someone is mainly motivated by money, he or she might not value offers of additional time off)

McClelland theory

These are the three needs in staff. The Need for Achievement (the need to meet given goals and objectives). The Need for Power
(the need to have power or influence over the actions of others). The Need for Affiliation (the need to be liked and to work in a
supportive environment). These are the Motivators that are present in varying degrees

Performance related pay

A financial method of motivation where workers are paid based on targets being met on time or exceeded within an organization

Job redesign

A non-financial method of motivation involves changing the tasks involved in a particular role within a business to make the job
more challenging and interesting for the employee with his consent

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Commission

A financial method of motivation where payments are made to employees in a specific percentage of the value/volume of sales
achieved

Piece rate

Piece rate is a payment system where workers are paid for each unit produced within an organization

Financial rewards

Monetary rewards are given to workers in return for their services. These include salary, commission, bonus, performance-related
pay

Non-financial rewards

Non-monetary rewards are offered to workers with monetary rewards. These include free transport, accommodation, etc

Bonus

A payment method where the employee is rewarded when a target is achieved by the organization.

Trade union

Group of workers within a business who join together for their common interest where their rights are protected

Collective bargaining

A process of negotiation between employer and employee on any disputes within a business

Team working

A method of motivation where groups of workers/staff work together toward a shared goal within an organization

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Job rotation

A non-financial motivation method where a business switch the worker’s job from one place to another place

Job enlargement

A non-financial motivation method is where workers are given additional but similar tasks to a job.

Job enrichment

A non-financial motivation method is a vertical extension of the person’s job and represents a greater challenge with additional
responsibility. It is a sort of vertical promotion within an organization

Quality circles

Voluntary groups of workers meet regularly to discuss work-related problems. Quality circles can also be used to make employees
feel as though their efforts are appreciated and valued

Internal Recruitment

In Internal Recruitment, a job is offered only to current employees by advertising it on staff notice boards or in the company news
sheet or magazine

External recruitment

In external recruitment, a job is offered to an individual who is not an existing employee of the organization by advertisement in a
newspaper etc.

Workforce planning

A function of HRM where they analyze and forecast the numbers of workers and the skills of those workers that an organization
requires to achieve its objectives

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Cell production

A non-financial method of motivation where the groups of employees will be given the responsibility to produce a certain product. It
is a type of teamwork

Employee participation

A non-financial method of motivation where the workers can get involved in the organization, management, or decision-making of
their business

Human resource management

A functional department that deals with human capital including recruitment and selection, training, and objectives of workers to
achieve business objectives

Recruitment and selection

It is the process of identifying the need for a job, defining the requirements of the position and the job holder, advertising the
position, and choosing the most appropriate person for the job

Redundancy

Redundancy is when a job is no longer required in a business and the employee doing that job loses the job through no fault of
their own

Dismissal

Dismissal is when an employee is removed from an organization for a cause relating to performance/non-performance such as
gross misconduct

Employment contract

A legal agreement between the employer and employee setting out terms and conditions that applies to an employee

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Job description
A job description is a detailed explanation of the roles and responsibilities of the post advertised. It is published in job
advertisement
Person specification
A person’s specification includes qualifications, skills, experience, and personal attributes a successful candidate should possess.
It is published in job advertisement
Equality
An organisational environment that supports fairness to all employees regardless of gender, race, religion, disability, or age, where
all are treated in the same way and there is an absence of bias or discrimination
Diversity
Diversity’ means having employees in a workforce that have variety of skills, experiences, characteristics and different cultural
background
Off-the-job training
A type of training where employees are taken away from their work place
Work-life balance
To create and provide such a supporting working environment within a business for employees where they can make their work
and life in equilibrium in terms of work and other important aspects of life i.e. time for friends and family, rest for a good healthy
mind
Maslow theory
Workers can be motivated by the fulfillment of the following needs. Basic need, social need, safety need, esteem need and self-
actualization
Herzberg theory
He described two factors theory, motivation factors, and hygiene factors.

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Labour turnover

The number of employees leaving a business in a given time period, expressed as a percentage of the total number of employees

It is calculated as follows:

Training

The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively

Induction training

Training which is given to new employees. The purpose of which is to is to help them to settle down quickly into the job by
becoming familiar with the people, the surroundings, the job and the business

On-the-job training

Training that takes place in a normal working situation at the workplace, using the actual tools, equipment, documents, or materials
that trainees will use

Process theory

Vroom’s theory of motivation is based on the belief that employees are prepared to work hard if they feel that their efforts will be
suitably rewarded.

Self-actualization

One need of Maslow’s theory that means the opportunity for an individual to be able to fulfill their own potential

Motivation factors include those factors that can motivate someone in the workplace. i.e. achievement, and work recognition.

Hygiene factors include those factors that can demotivate someone at the workplace but cannot motivate workers. i.e. salary,
relationship with peers

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Taylor theory

Taylor believed that people were motivated by money and that they should be paid according to the output that they produced

Elton mayo theory

Workers are motivated by having social needs met. Workers should work in teams. Managers should have greater involvement in
employee's working life. More two-way communication between managers and workers

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