RBSE SS 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.

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

Doing a task with the least possible waste of money, materials, time and effort, so that more output is obtained from the same inputs.

The unseen thread that ties together the work of different departments and individuals so that all efforts move towards one common purpose without conflict.

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

The principle that the basic management functions of planning, organising, directing and controlling apply to every kind of organisation, whether business, government, hospital or club.

F.W. Taylor's approach of studying each task with observation and measurement to find the one best method, then standardising it and training workers to follow it.

A technique of timing a worker's movements to determine the standard time a qualified worker needs to complete a specified job at a defined level of performance.

The close observation of a worker's body movements while doing a job, done to remove unnecessary and wasteful movements and keep only the productive ones.

A wage plan in which workers who produce above the standard output get a higher rate per piece, while those below the standard get a lower rate, so efficiency is rewarded.

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

The unbroken line of authority running from the top of an organisation to the lowest level, which also defines the formal route for communication between members.

Fayol's shortcut that lets two employees at the same level in different departments communicate directly in an emergency, provided superiors are informed.

The principle that managers should build team spirit and unity among employees, because collective effort and harmony achieve more than isolated individual effort.

The sum of external forces, factors and institutions that surround a business and influence its decisions and performance but lie beyond its direct control.

The immediate surroundings of a firm, including suppliers, customers, competitors, market intermediaries and the public, which affect its daily operations directly.

Broad national and global forces such as economic, political, legal, technological, social and demographic conditions that shape opportunities and threats for all firms.

A structured exercise that lists a firm's internal strengths and weaknesses alongside external opportunities and threats, helping managers match capability with the environment.

Deciding in advance what to do, how to do it and when, by setting objectives and choosing the course of action that will achieve them.

A comprehensive long-term plan that sets the direction of the organisation and allocates resources to match its strengths with the opportunities in the environment.

A general statement or guideline that channels thinking and decision-making within the organisation, leaving managers free to choose how to act in a given situation.

A specific, rigid statement of what must or must not be done in a particular situation, allowing no discretion and usually carrying a penalty for violation.

The process of identifying and grouping work, defining authority and responsibility, and establishing relationships so that people can work together effectively.

The downward transfer of authority from a superior to a subordinate along with responsibility for a task, while the superior remains accountable for the outcome.

The obligation of a subordinate to answer for the assigned work to the person who gave the authority, and it cannot be passed on to anyone else.

The number of subordinates that a manager can effectively supervise at one time; a narrow span creates tall structures and a wide span creates flat ones.

Filling and keeping filled the positions in the organisation structure through recruitment, selection, placement, training and appraisal of people.

Searching for and attracting a pool of prospective applicants in sufficient numbers so that the organisation can choose the most suitable persons for its vacancies.

The process of screening applicants through tests and interviews to reject unsuitable candidates and pick the one who best fits the job requirements.

Instructing, guiding, motivating and supervising employees so that they perform their tasks willingly and contribute to the goals of the organisation.

The ability of a manager to influence the behaviour and attitudes of others so that they follow willingly and work towards achieving group objectives.

The inner psychological force that energises and directs an employee towards a goal, arising from unsatisfied needs that the manager tries to satisfy.

Comparing actual performance with planned standards, finding the reasons for any gap, and taking corrective action to keep performance on track.

A control principle under which managers concentrate their attention only on significant deviations from standards and leave minor variations to subordinates.

The mix of long-term sources of funds, namely debt and equity, that a company uses to finance its assets and operations.

The use of fixed-interest debt in the capital structure to magnify the effect of changes in operating profit on the earnings available to equity shareholders.

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

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

The stock exchange segment where existing securities are bought and sold among investors, giving liquidity to holders without giving fresh funds to the company.

An institution that holds securities in electronic form on behalf of investors, so that transfers happen through book entries rather than physical certificates.

The set of four controllable elements, product, price, place and promotion, that a firm combines to satisfy the target market and achieve its marketing objectives.

The sequence of stages a product passes through, from introduction to growth, maturity and decline, each requiring a different marketing strategy.

Giving a product a name, sign, symbol or design that identifies it and distinguishes it from competing goods in the minds of buyers.

The Indian law that safeguards buyers of goods and services by providing redressal of complaints and by setting up consumer commissions at district, state and national levels.

The legal entitlements of a buyer, including the right to safety, information, choice, be heard, seek redressal and receive consumer education.

The remedy or compensation a consumer can obtain through a complaint before a consumer commission when goods or services are defective or deficient.