BSEH SS Business Studies key terms

The process of getting work done through other people by coordinating their efforts so that organisational goals are achieved efficiently and effectively.

Efficiency means doing a task with minimum waste of resources; effectiveness means actually completing the intended goal. Good management requires both together.

The orderly synchronising of individual efforts and departmental activities so that the whole organisation moves towards shared goals without duplication or conflict.

The view that management meets some traits of a profession, such as a body of knowledge and a code of conduct, but entry and practice are not legally restricted.

The idea that basic management principles can be applied in all types of organisations, whether business, government, hospital or club, though with suitable adaptation.

Each employee should receive orders from and be accountable to only one superior, so that conflicting instructions and confusion are avoided.

All activities having the same objective should be grouped under one head and one plan, ensuring that effort in a unit is focused.

The formal line of authority running from the top to the lowest level of an organisation, along which orders and communication normally travel.

A shortcut in the scalar chain that lets two employees at the same level communicate directly in an emergency, provided superiors are informed.

A principle stressing team spirit, harmony and unity among employees so that the organisation works as one coordinated group.

The sum of external factors, such as economic, social, legal, technological and political forces, that affect how an organisation operates and makes decisions.

The immediate surroundings of a firm, including suppliers, customers, competitors, intermediaries and the public, which directly influence its day-to-day operations.

The broad, distant forces of an economy, such as economic, political, legal, social, technological and natural conditions, that affect all firms generally.

A tool that maps a firm's internal strengths and weaknesses against external opportunities and threats to guide strategy and planning.

Deciding in advance what to do, how to do it and when, by setting objectives and choosing the means to achieve them.

A comprehensive long-term plan that defines the direction of the organisation and allocates resources to achieve its main objectives in a changing environment.

A general statement or guideline that sets the boundaries within which decisions are taken, without prescribing exact steps.

The process of identifying and grouping work, assigning duties, and creating authority relationships so that people work together towards objectives.

The transfer of authority and responsibility from a superior to a subordinate to carry out a specific task, while the superior remains accountable.

The right of a manager to give orders and to expect compliance from subordinates within the organisational hierarchy.

The obligation of a subordinate to perform the task assigned by a superior; it arises from the superior-subordinate relationship and flows upward.

Being answerable for the outcome of a task and the use of authority; a superior cannot escape accountability by delegating work.

The number of subordinates a manager can effectively supervise at one time; a narrow span gives a tall structure, a wide span a flat one.

Filling organisational positions and keeping them filled by recruiting, selecting, training and developing people for suitable roles.

Searching for and attracting a pool of prospective candidates so that the organisation can choose the people best suited to its vacancies.

The process of screening applicants and choosing the most suitable one for a job, using tests, interviews and reference checks.

The function of instructing, guiding, motivating and supervising subordinates so that they work willingly towards organisational goals.

The inner force that energises and directs behaviour towards a goal; managers use it to make employees put in their best effort.

The ability to influence people to work enthusiastically towards objectives, using personal qualities rather than only formal authority.

The act of overseeing subordinates at work, guiding them, and correcting deviations so that tasks are performed as planned.

Measuring actual performance against standards, finding deviations, and taking corrective action so that organisational goals are met.

A control principle under which managers attend only to significant deviations from standards, leaving routine matters to subordinates.

A formal system that collects, stores and supplies relevant information to managers so that planning and controlling decisions rest on reliable data.

The activity of planning, raising and using funds so that the firm earns an adequate return while keeping financial risk under control.

The mix of debt and equity used by a firm to finance its assets; the right mix lowers cost of capital without excessive risk.

The use of borrowed funds in the capital structure to increase the return to equity holders, which also raises financial risk.

The funds needed for day-to-day operations, mainly current assets such as inventory and receivables minus current liabilities.

The part of the capital market where new securities are issued and sold to investors for the first time, raising fresh funds for the issuer.

The market where already issued securities are bought and sold among investors, providing liquidity but no new funds to the issuer.

The first sale of a company's shares to the general public, which converts it from a private to a listed company.