WBCHSE HS Business Studies key terms

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

Efficiency means completing work at minimum cost and without waste of resources; effectiveness means actually achieving the intended goals. Good management requires both together, not one at the expense of the other.

The orderly synchronising of individual efforts and departmental activities so that resources are integrated and goals are met without duplication, conflict or delay. It runs through every function of management.

The view that management meets some attributes of a profession, such as a recognised body of knowledge and service motive, but lacks compulsory licensing and a single enforced code of conduct for all practitioners.

The characteristic of management principles that they apply to all types of organisations, whether business, government or non-profit, though their use must be adapted to each situation.

Broad guidelines, derived from observation and experience, that guide managers in handling situations and taking decisions. They are flexible, general and not rigid rules.

Splitting the total task into smaller specialised parts assigned to different people, so that each worker gains skill and speed through repetition and total output rises.

The principle that an 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 to the lowest level of an organisation, which defines who reports to whom and the formal route for communication.

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

The principle that managers should build team spirit and unity among employees, replacing 'I' with 'we', because harmony in the group gives the organisation greater strength.

The idea that there is no single best way to manage; the technique chosen must depend on the situation, so principles are applied selectively rather than uniformly.

The sum of external and internal factors, such as economic conditions, competitors, customers, law and technology, that surround a firm and influence its decisions and performance.

The immediate actors close to the firm that directly affect its day-to-day operations: suppliers, customers, competitors, market intermediaries, financiers and the public.

The wider forces affecting all firms in an economy, usually grouped as economic, social, technological, political and legal, and natural or demographic conditions.

A structured review that lists a firm's internal strengths and weaknesses alongside external opportunities and threats, helping managers match capabilities to the environment.

Deciding in advance what to do, how to do it and when, and who is to do it. It bridges the gap between where the firm is and where it wants to be.

A comprehensive long-term plan that states the firm's objectives, the direction it will take and the allocation of resources needed to reach those objectives.

The process of identifying and grouping work, defining authority and responsibility, and creating relationships so that people work together effectively towards planned goals.

The framework of formal relationships, positions and lines of authority that shows how tasks are divided, grouped and coordinated within an enterprise.

The number of subordinates a manager can supervise directly and effectively; a narrow span creates tall structures, a wide span creates flat ones.

The downward transfer of authority from a superior to a subordinate to carry out a specific task, while the superior remains accountable for the outcome.

Authority is the right to give orders and use resources; responsibility is the obligation to perform assigned duties. Responsibility flows upward and cannot be delegated away.

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

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

The process of screening applicants and choosing the most suitable person for a job through tests, interviews and reference checks, rejecting those who do not fit.

Training builds specific job-related skills in employees; development is broader growth of a person's overall capabilities for future roles and responsibilities.

Instructing, guiding, motivating and supervising subordinates so that they work willingly and effectively towards the goals of the organisation.

The inner drive that energises and directs behaviour towards a goal; managers create conditions and incentives that make employees want to perform well.

The ability to influence people to work enthusiastically towards organisational goals, based on personal qualities and the relationship a manager builds with the team.

The exchange of information, ideas and understanding between people through a chosen channel, with feedback confirming that the message was received and understood.

Measuring actual performance against planned standards, identifying deviations and taking corrective action so that organisational goals are achieved as intended.

A control technique in which managers focus attention only on significant deviations from standards, leaving routine matters to subordinates and saving managerial time.

Planning, raising, investing and managing the funds of a business so that adequate returns are earned and financial risk is kept within acceptable limits.

The mix of debt and equity used by a firm to finance its assets; the choice affects financial risk, control and the cost of capital.

Using borrowed funds, on which a fixed interest is paid, to increase the return available to equity shareholders when the firm earns more than the cost of debt.

The funds needed for day-to-day operations, mainly to finance current assets such as stock, debtors and cash, after allowing for current liabilities.

The effect on profit and risk of using fixed-cost funds, such as debt or preference capital, in the capital structure of a business.

A place, physical or electronic, where buyers and sellers of financial assets such as shares, debentures and bills meet to transfer funds and set prices.

The segment where a company issues new securities to investors to raise fresh capital, as in an initial public offer or a rights issue.

The market where existing securities are bought and sold among investors, providing liquidity and price discovery rather than fresh funds to the issuer.

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

The stages a product passes through over time, usually introduction, growth, maturity and decline, each calling for different marketing strategies.

Giving a product a name, sign or symbol that identifies it and distinguishes it from competitors, helping buyers recognise and trust it.

Indian legislation that safeguards buyers against defective goods, poor services and unfair trade practices, and provides redressal through district, state and national commissions.

The legal entitlements of a buyer, including safety, information, choice, being heard, redressal and consumer education, which traders are obliged to respect.

The three-tier system of consumer courts, at district, state and national level, that hears complaints and orders compensation or replacement for consumers.