BSEB Inter Business Studies key terms

The process of getting work done through other people by planning, organising, staffing, directing and controlling activities so that organisational goals are achieved efficiently and effectively.

Doing a task at the lowest possible cost and with the least waste of resources, so that the relationship between inputs used and outputs produced is favourable.

Completing the intended task and reaching the stated goal on time, regardless of how many resources were consumed in the process.

The act of synchronising the effort, timing and direction of different individuals and departments so that they all move towards a common organisational goal.

The view that management has a body of specialised knowledge, formal training and service motive, yet lacks compulsory licensing, so it is a profession only in a limited sense.

The feature of management principles meaning they can be applied to all types of organisations, whether business, government, hospital or club, though with suitable adjustment.

Broad general guidelines, derived from observation and experience, that guide managers in handling situations and taking decisions in the workplace.

An approach developed by F. W. Taylor that replaces rule-of-thumb methods with systematic study of work, standardisation, scientific selection of workers and close cooperation between workers and management.

A technique of scientific management that determines the standard time required to perform a well-defined job, used to set fair work standards and remove unnecessary movements.

A wage plan in which workers who produce above the standard output get a higher rate per unit, while those below standard receive a lower rate per unit.

The principle that each subordinate should receive orders from and be answerable to only one superior, so that confusion and conflicting instructions are avoided.

The principle that all activities having the same objective should be grouped under one head and one plan, ensuring a single focus of effort.

The unbroken line of authority running from the topmost executive to the lowest level of an organisation, which also defines the formal path of communication.

A principle of management that stresses building team spirit and harmony among employees so that everyone feels part of one united effort.

The sum of all external and internal forces, institutions and conditions that surround a business and influence its working, decisions and performance.

The part of the business environment made up of economic factors such as interest rates, inflation, income levels, exchange rates and the state of the economy.

The element of the business environment consisting of customs, values, traditions, family structure and lifestyle of the society in which a firm operates.

The removal or relaxation of government restrictions and controls on business activity, allowing firms greater freedom in production, pricing and foreign trade.

The transfer of ownership and management of public sector enterprises to private individuals or companies, reducing the role of the state in business.

Deciding in advance what to do, how to do it and when to do it, so that future activities are directed towards achieving predetermined objectives.

A comprehensive plan that sets the broad direction of an organisation, matching its resources and capabilities to the opportunities and threats in the environment.

A general statement or guideline that channels the thinking and decisions of managers within defined limits, but leaves room for judgement in application.

A specific statement that tells what must or must not be done in a given situation, with no scope for discretion or interpretation by the employee.

The management function of identifying and grouping work, assigning duties, delegating authority and creating relationships so that people can work together effectively.

The process by which a superior assigns a part of his work and the necessary authority to a subordinate, who then becomes accountable for that work.

The right of a manager to give orders and to command the resources and obedience of subordinates, usually derived from the formal position held.

The obligation of a subordinate to answer for the assigned work and to report results to the superior who delegated it; it cannot be delegated away.

The number of subordinates that one manager can effectively supervise and control at a given time, deciding whether the structure is flat or tall.

The framework of formal relationships, reporting lines and division of duties that shows how work is arranged among departments and levels in an enterprise.

The management function of estimating manpower needs, recruiting, selecting, placing, training, appraising and compensating people so that the right persons fill each job.

Searching for and attracting a pool of prospective candidates to apply for a vacant position, before the selection process begins.

The process of screening and testing job applicants to choose the most suitable person, rejecting the unfit and appointing the chosen candidate.

Systematic instruction and practice given to employees to develop the skills and knowledge needed for performing their present job better.

The management function of instructing, guiding, motivating, supervising and communicating with employees so that they work willingly towards organisational objectives.

The ability of a manager to influence the behaviour and attitudes of subordinates so that they follow him voluntarily and put effort into group goals.

The inner psychological force that arouses, energises and sustains behaviour, pushing a person to act in a way that satisfies a felt need.

A theory arranging human needs in five levels from physiological and safety needs up to social, esteem and self-actualisation needs, which are satisfied in that order.

The act of overseeing subordinates at work, guiding them and ensuring that they perform their tasks as instructed and to the required standard.

The management function of measuring actual performance against standards, identifying deviations, analysing their causes and taking corrective action.

A control principle under which managers attend only to significant deviations from standards and leave routine matters to their subordinates.

A technique of control that focuses attention on key result areas where deviation would seriously damage the organisation, ignoring minor ones.

The activity concerned with planning, raising, investing and distributing funds so that the firm achieves its financial objectives and maximises owners' wealth.

The mix of debt and equity used by a company to finance its assets and operations, chosen to keep the overall cost of capital low.

The funds invested in current assets such as stock, debtors and cash, needed to finance the day-to-day operations of a business.

The segment of the capital market where new securities are issued for the first time and the issuing company directly receives the funds raised.

The market where existing securities are bought and sold among investors, providing liquidity but giving no fresh funds to the issuing company.

The first sale of shares by a company to the general public, used to raise capital and to get its securities listed on a stock exchange.

An organised market where existing securities are traded under prescribed rules, providing liquidity, price discovery and a safe trading platform.

The set of controllable elements a firm combines to influence demand, commonly the four Ps of product, price, place and promotion.

Anything of value offered to a market to satisfy a want, including physical goods, services and ideas, along with its quality, design and branding.

The amount of money that customers pay to obtain a product, forming the only element of the marketing mix that directly generates revenue.

The activities of informing and persuading customers about a product, using advertising, personal selling, sales promotion and publicity.

Giving a product a distinct name, sign or symbol so that buyers can identify it and distinguish it from competing products in the market.

The body of legal and voluntary measures that safeguard buyers of goods and services against unfair trade practices, defective products and exploitation.

The legally recognised entitlements of a buyer, such as the right to safety, information, choice, redressal and hearing, available against sellers and service providers.

A law that protects buyers of goods and services, defines their rights, sets up redressal commissions at district, state and national levels and regulates misleading advertisements.