Business Management

Definitions Review
*What does not kill us only makes us
stronger
1. Shareholders are people who own shares in the company on the
stock exchange.
2. Stakeholders are people who have a vested interest in the
company. Eg employees, suppliers, competitors..,
3. Globalisation refers to the removal of trade barriers across
countries to allow organisations to trade on the international stage.
4. Induction is the process of familiarising new members of staff with
the business and its culture.
5. Benchmarking is a process where an organisation measures their
performance against similar types of businesses and identifies ways
to improve business performance.
6. Best practice involves those work practices, systems and
procedures that are top class and innovative in comparison to
competition in the same industry or market.
7. Performance Appraisals (reports) are used to measure, identify
and help develop an employees skill level, in order for them to
achieve organisational objectives. It identifies current performance
against expectations and provides training which would help
develop the skills of the employees.
8. Restraining forces resist change such as high cost, employee
attitudes or management procrastination.
9. Driving forces encourage change within organisations. These
include competition, societys attitudes, innovation in technology.
10.
Australian Workplace Agreements (AWA) are employment
contracts negotiated and made individually between an employer,
and an employee, without the use of union involvement.
11.
Key Performance Indicators (KPI) are criteria and statistics
used to measure the financial or non-financial efficiency and
effectiveness of the organisations performance.
12.
Productivity is the level of output per unit of input. It is a
direct measure of efficiency.
13.
Outsourcing is where an organisation employs the services
of another organisation to perform a specific task in which they
specialise, thus cutting costs.
14.
A mission statement identifies who the organisation is, their
reason for existence, and the overall objectives they wish to
achieve.

15.
The operating elements of an operations management
system are inputs, processes and outputs.
16.
Organisational change is any alteration to the internal
business environment.
17.
A vision statement is the starting point from which
organisational aims and objectives are developed for the future.
18.
Staff turnover is the number of resignations of staff who had
left the organisation and the number of new staff employed.
19.
Organisational Structure or chart shows the way an
organisation divides and coordinates its activities. Ex Matrix,
Functional, Divisional..,
20.
Leadership is the ability to motivate and influence
employees to achieve corporate goals.
21.
Employee relations are the interplay that takes place
between workers and employees in relation to their working
conditions.
22.
Competitiveness is a desire to gain an
advantage over a rival to increase sales. Ex
productivity gains, cheaper parts or labour..,
23.
A managers role is to Plan, Organise, Lead
and Control
24.
Planning is the process of setting strategies
to achieve the short, middle and long term goals of
the organisation.
25.
Organising is the defining of relationships and delegation of
tasks to achieve the organizations goals.
26.
Leading involves co-ordinating and directing tasks to achieve
organisational objectives.
27.
Control is the implementing of KPIs to compare, evaluate and
respond to the planned goals with actual performance
28.
Stress management is a skill to decrease stress in workers
and themselves.
29.
Problem solving is a process to analyse a course of action to
correct a situation.
30.
Emotional intelligence understanding the way others feel or
think
31.
Communication is the ability to send and receive a message
to ensure its understood by the receiver.

32.
Delegation is passing authority to others to perform tasks or
make decisions.
33.
Time management is a systematic approach to efficiently
use resources
34.
Negotiation is the process where one party seeks to obtain
something from another party.
35.
Performance Indicators measure data to evaluate a
companys performance.
36.
A Policy is a set of rules and procedures that govern how an
organization is run.

What can managers do to allocate people roles?

Key Management Role

Description

Planning

setting objectives
analysing the present situation and future opportunities
(SWOT)
developing and evaluating alternatives
implementing the plan
monitoring and reviewing results

Organising

organising the structure of the organisation

determining what is needed
establishing staff in productive working environments
assigning responsibilities to staff
delegating authority
communicating
arranging plant and machinery

Leading

communicating ideas and objectives to everyone

influencing the corporate culture
modelling the expected behaviour and ideals
leading the organisation into the future
establishing performance standards
determining methods of measuring performance
measuring actual performance
comparing actual performance with established standards
taking corrective action when necessary
reviewing performance standards

Controlling