PGDBA key terms

The number of subordinates who report directly to one manager. A narrow span creates tall hierarchies with close supervision; a wide span creates flat structures that need more employee self-management and clearer procedures.

The unbroken line of authority running from the top of an organisation down to each operative position. It defines who reports to whom and clarifies escalation paths when problems exceed a person's authority.

Assigning a task plus the authority needed to complete it to a subordinate, while the manager keeps accountability. Effective delegation specifies the result, resources, deadline and reporting checkpoints rather than the exact method.

The obligation of a person to answer for results to whoever assigned the work. It cannot be delegated away: a manager who hands over a task remains answerable for the outcome to their own superiors.

McGregor's two contrasting assumptions about workers. Theory X assumes people dislike work and need close control; Theory Y assumes work is natural and people seek responsibility. The manager's assumption tends to become self-fulfilling.

A motivation model splitting job factors into hygiene factors (pay, policy, working conditions) that prevent dissatisfaction, and motivators (achievement, recognition, growth) that create genuine satisfaction. Improving hygiene alone removes complaints but does not motivate.

The shared values, beliefs and behavioural norms that guide how members of an organisation act when nobody is watching. Culture shows up in rituals, stories, symbols and what leaders reward or tolerate.

A deterioration in decision quality when a cohesive group suppresses dissent and pressures members toward apparent unanimity. Symptoms include self-censorship, illusions of invulnerability and stereotyping outsiders; remedies include devil's advocacy and anonymous input.

Recording revenue when it is earned and expenses when they are incurred, regardless of when cash moves. It matches costs with the income they helped generate and underpins the income statement and balance sheet.

The rule that expenses are recognised in the same period as the revenues they helped produce. It explains why depreciation, warranty provisions and accrued expenses are recorded before the related cash is paid.

Current assets minus current liabilities, measuring short-term liquidity. Positive working capital means short-term assets cover short-term obligations; a persistent negative figure signals possible difficulty paying suppliers or lenders on time.

The sales volume or revenue at which total contribution exactly covers total fixed costs, so profit is zero. It equals fixed costs divided by contribution per unit, and is a core input for pricing and capacity decisions.

Sales revenue minus variable costs. It shows how much each unit or each rupee of sales contributes toward covering fixed costs and then generating profit, making it central to short-run pricing and product-mix choices.

The percentage change in quantity demanded divided by the percentage change in price. Demand is elastic when the absolute value exceeds one, meaning revenue falls if price rises; inelastic demand lets a firm raise price and gain revenue.

The competitive setting of a market, described by the number of sellers, product differentiation, entry barriers and information flow. It ranges from perfect competition through monopolistic competition and oligopoly to monopoly, shaping pricing power.

Conditions that make it costly or slow for new firms to enter an industry, such as capital requirements, licences, patents, scale economies and brand loyalty. High barriers protect incumbent margins and support oligopoly pricing behaviour.

The value of the best alternative forgone when a resource is used for one purpose. It is the correct cost for economic decisions because it captures what the firm gives up, not merely what it pays.

Money already spent that cannot be recovered whatever decision is taken. Rational decisions ignore sunk costs, which is why continuing a failing project because of past spending is a classic decision error.

Dividing a heterogeneous market into groups of buyers with similar needs or behaviour so that offers can be tailored. Segments should be measurable, accessible, substantial and stable to be worth serving.

Choosing which segments to serve and designing an offer and image that occupy a distinct, valued place in the chosen customers' minds. Positioning is built through consistent claims, price, channel and product design.

The controllable set of decisions a firm uses to pursue its target market, traditionally product, price, place and promotion, with people, process and physical evidence added for services. Each element must reinforce the chosen positioning.

The sequence of introduction, growth, maturity and decline that most products pass through. Each stage implies different pricing, promotion and investment choices, and maturity usually brings price competition and falling margins.

The systematic process of gathering information about a job's duties, tasks, responsibilities and required competencies. Its outputs, a job description and job specification, feed recruitment, selection, training and performance appraisal.

A statement of the qualifications, skills, experience and personal attributes a person needs to perform a job well. It is derived from job analysis and is the basis for screening criteria and interview design.

The periodic, structured evaluation of an employee's work against agreed goals and behavioural standards. Good systems combine results and behaviours, train raters, allow appeal and link outcomes to development rather than punishment alone.

The degree to which employees invest discretionary effort and emotional commitment in their work. It is driven by meaningful tasks, fair treatment, supportive supervision and visible career paths, and it predicts retention and productivity.

The order size that minimises the sum of ordering costs and holding costs for an item. It balances larger, less frequent orders against higher inventory carrying charges, under assumptions of steady demand and known costs.

Extra inventory held to absorb unexpected demand spikes or supplier delays. It is sized from demand and lead-time variability and the desired service level, and it trades holding cost against stockout risk.

A production philosophy in which materials arrive and items are made only as needed, minimising inventory and exposing waste. It requires reliable suppliers, short setups and stable quality, since there is little buffer to absorb disruption.

A project scheduling technique that maps task dependencies and durations to find the longest sequence of dependent tasks. That critical path sets the minimum project duration, and any delay on it delays the whole project.

A project control method comparing planned value, earned value and actual cost to measure schedule and cost performance objectively. It yields cost and schedule variance indices that flag overruns before they appear in cash reports.

The defined boundary of what a project will deliver, including features, deliverables and exclusions. A clear, approved scope statement, with change control, is the main defence against scope creep and cost overruns.

A statement of no effect or no difference that a statistical test attempts to reject. Failure to reject it does not prove the effect is absent; it only means the sample evidence was insufficient against it.

The probability of observing data at least as extreme as the sample, assuming the null hypothesis is true. It is not the probability that the null is true, and it must be read alongside effect size and study design.

A Type I error rejects a true null hypothesis (false positive); a Type II error fails to reject a false null hypothesis (false negative). Lowering the significance threshold reduces Type I risk but raises Type II risk for a fixed sample size.

The principle that a company can act only within the objects and powers in its constitution and statute. Acts beyond those powers are invalid, protecting shareholders and creditors from unauthorised use of company funds.

The principle that a company has a legal personality distinct from its members and directors. It can own property, contract and sue in its own name, and shareholder liability is normally limited to unpaid capital.

The obligation of directors and officers to act honestly, in the company's best interest and with reasonable care, avoiding conflicts of interest. Breach can lead to personal liability, disqualification or claims for loss.

The system of rules, board structures and accountability mechanisms by which companies are directed and controlled. It addresses board independence, audit, disclosure, risk oversight and protection of minority shareholders.

A structured summary of an organisation's internal strengths and weaknesses and external opportunities and threats. It is useful for organising evidence, but only when paired with prioritisation and action, since it does not itself rank options.

A framework assessing industry attractiveness through rivalry, buyer power, supplier power, threat of new entrants and threat of substitutes. It explains why average profitability differs across industries and where to build defensive advantage.

A bundle of skills and technologies that is hard for rivals to copy, valuable to customers and usable across several products or markets. It is the internal source of durable advantage rather than a single successful product.

Any factor that distorts or blocks a message between sender and receiver, such as jargon, noise, status differences, emotional state or poor listening. Naming the barrier helps choose a fix like feedback loops or simplified language.

The return path that lets a sender confirm how a message was received and adjust it. In communication it means questions, paraphrasing and acknowledgement; in systems it means using output to correct future action.

An organised set of people, procedures and technology that collects, processes and distributes information to support managerial decisions. Its value depends on data quality, timeliness and fit with the decisions it serves.