Kerala Plus Two Business Studies (DHSE) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Management

The process of getting things done through others to achieve organisational goals effectively and efficiently.

Effectiveness vs efficiency

Effectiveness means completing a task on time to achieve the goal; efficiency means doing it with minimum cost and resources.

Levels of management

Top management sets policy and strategy, middle management interprets policy, and supervisory management directly oversees the work of operatives.

Coordination

The essence of management that synchronises the efforts of all individuals and departments; it is present in every function from planning to controlling.

Scientific management

F.W. Taylor's approach applying scientific methods to improve productivity, based on science, harmony, cooperation and development of each person.

Functional foremanship

Taylor's technique of placing eight specialist foremen, such as route clerk, speed boss and inspector, over workers instead of a single boss.

Differential piece wage

Taylor's incentive system paying a higher rate per piece for output above the standard and a lower rate for output below it.

Unity of command

Fayol's principle that each subordinate should receive orders from and be accountable to only one superior.

Scalar chain

The formal line of authority from the highest to the lowest level; the gang plank is a permitted shortcut between equals in emergencies.

Business environment

The sum of external forces such as economic, social, technological, political and legal factors that affect a firm but lie outside its control.

Environmental scanning

The systematic monitoring of external forces to identify opportunities and threats before they affect the firm, forming the basis for planning.

Planning

Deciding in advance what to do, how, when and by whom, to bridge the gap between where the firm is and where it wants to go.

Planning premises

Assumptions about the future internal and external environment on which plans are formulated and implemented.

Policy vs rule

A policy is a general guide to decision-making that allows discretion; a rule is a specific, rigid statement that must be followed exactly.

Organising

The process of identifying and grouping work, assigning duties and establishing authority relationships so that people work together effectively.

Delegation

The downward transfer of authority from a superior to a subordinate; authority can be delegated but responsibility and accountability remain with the superior.

Decentralisation

The systematic dispersal of decision-making authority to lower levels throughout the organisation, an extension of delegation.

Recruitment

The positive process of searching for prospective employees and stimulating them to apply for jobs in the organisation.

Selection

The negative process of choosing the most suitable candidate from among applicants through screening, tests, interviews and reference checks.

Training vs development

Training imparts specific job-related skills over the short term; development is the overall long-term growth of the employee.

Directing

Instructing, guiding, motivating and leading people towards organisational goals; its elements are supervision, motivation, leadership and communication.

Maslow's need hierarchy

A motivation theory arranging needs from lower to higher: physiological, safety, social, esteem and self-actualisation, where satisfied needs cease to motivate.

Grapevine communication

Informal communication that spreads rapidly through the organisation without following the chain of command, but is often unreliable and distorts messages.

Controlling

The process of comparing actual performance with standards, analysing deviations and taking corrective action to ensure goals are achieved.

Management by exception

A control principle under which managers attend only to significant deviations beyond the acceptable range and leave minor ones to subordinates.

Capital structure

The mix of debt and equity used to finance a firm's assets; it affects financial risk, interest burden and return on equity.

Working capital

The excess of current assets over current liabilities; it measures the firm's liquidity and ability to meet short-term obligations.

Money market

A market for short-term financial assets with maturity up to one year, including call money, treasury bills, commercial paper and certificates of deposit.

SEBI

The regulator of the Indian securities market, set up in 1988 and given statutory status in 1992 with protective, regulatory and developmental functions.

Marketing mix

The four Ps of product, price, place and promotion, extended to seven Ps with people, process and physical evidence for services.

Advertising

A paid form of non-personal communication by an identified sponsor, used to inform, persuade and remind customers about products.

Consumer rights

The rights to safety, information, choice, being heard, redressal, consumer education and a healthy environment, available to buyers of goods and services.