IB Business Management Unit 2: HR Management - Motivation, Structure, Hierarchy Key Definitions

Appraisals are formal evaluations of an employee's performance over a specific period.

A process where a neutral third party makes a binding decision to resolve a dispute.

A leadership style where the leader makes all decisions with little or no input from employees. Authority is centralized, and employees are expected to follow orders.

Barriers to communication are obstacles that prevent the effective exchange of information.

Bureaucracy refers to the formal rules, procedures, and hierarchical structures that govern an organization.

Centralization means that decision-making is concentrated at the top levels of the organization.

Chain of command is the formal line of authority through which instructions are passed within an organization.

Collective bargaining is a process where employees, often represented by trade unions, negotiate with employers to improve wages, benefits, and working conditions.

Commission is a payment based on sales performance, often used in sales roles.

Communication is the exchange of information between people or organizations.

The unique attributes or capabilities that allow a business to outperform its competitors. It enables a company to offer superior value to customers, whether through lower costs, differentiated products, superior quality, brand reputation, or innovation.

Conciliation is a voluntary process where a neutral third party facilitates discussions between employees and employers to help resolve disputes.

Decentralization distributes decision-making authority to lower levels of the organization.

Delayering involves removing layers of management to create a flatter organizational structure.

Delegation is the process of assigning authority to subordinates while retaining ultimate responsibility for the task.

A leadership style where decision-making is collaborative, and employees actively participate in discussions.

These schemes offer employees shares in the company, aligning their interests with long-term business success.

External recruitment involves hiring candidates from outside the organization through job postings, recruitment agencies, or networking.

Extrinsic motivation comes from external rewards, such as salary, promotions, or bonuses.

Financial rewards are monetary incentives provided to employees in exchange for their work. These rewards can be direct, like salaries and bonuses, or indirect, such as benefits and profit-sharing schemes.

Fringe payments (or benefits) are non-cash rewards that enhance an employee's compensation package.

The gig economy refers to a labor market characterized by short-term, flexible, and freelance work instead of permanent jobs.

Human Resource Planning (HRP) is the process of forecasting an organization's future workforce needs and developing strategies to meet those needs.

The strategic approach to managing people in an organization to help the business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives.