GLOSSARY

Organisational Structure: refers to the levels of management and division of responsibilities within an
organisation.

Job Description: outlines the responsibilities and duties to be carried out by someone employed to do a
specific job.

Delegation: Means giving a subordinate the authority to perform particular tasks. It is very important to
remember that it is the authority to perform a task which is being delegated -- not the final
responsibility.

Chain of command: is the structure in an organisation which allows instructions to be passed down from
senior management to lower levels of management.

Span of control: is the number of subordinates working directly under a manager.

Line managers: have direct authority over subordinates in their department. They are able to take
decisions in their departmental area.

Staff managers: are specialist advisers who provide support to line managers and to the board of
directors.

Decentralised management structure: means that many decisions are not taken at the centre of the
business at all but are delegated to a lower level of management.

Centralised management structure: means that most decisions are taken at the centre, or higher levels
of management.

Strategic decisions: are very important decisions which can affect the overall success of the business.

Tactical decisions: are those which are taken more frequently and which are less important.

Operational decisions: are day-to-day decisions which will be taken by a lower level of managers.

Communication: is the transferring of a message from the sender to the receiver, who understands the
message.

Message: is the information or instructions being passed by the sender to the receiver.

Transmitter/Sender: is the person starting off the process by sending the message.

Medium of Communication: is the method used to send a message, for example, a letter is a method of
written communication and a meeting is a method of verbal communication.

Receiver: is the person who receives the message.

Feedback: is the reply from the receiver which shows whether the message has arrived, been
understood and, of necessary, acted upon.

Trade Union: is a group of workers who have joined together to ensure their interests are protected.

Craft Union: is a trade union which represents a particular type of skilled worker.

General Union: is a trade union which represents workers from a variety of trades and industry. They are
often unskilled but also include semi-skilled workers.

Industrial Union: is a trade union which represents all types of workers in a particular industry.

White-Collar Union: is a trade union which represents non-manual workers, for example, office workers,
management and professional people.

Shop Steward: is an unpaid representative of a trade union at factory/office level.

Closed Shop: is where all employees must be a member of the same trade union.

Single-Union Agreement: is when a firm will deal with only one particular trade union and no others.

Employer Associations: are groups of employers who join together to give benefits to their members;
also known as employer federations or trade associations.

Negotiation: is another name for collective bargaining. It is when there is joint decision-making involving
bargaining between representatives of the management and of the workforce within a firm. The aim is
to arrive at a mutually acceptable agreement.

Collective-Bargaining: is negotiations between one or more trade unions and one or more employers
(or employers' associations) on pay and conditions of employment.

Productivity agreement: is where workers and management agree an increase in benefits, in return for
an increase in productivity.

Industrial Action: is action taken by the trade unions to decrease or halt production.

Strike: is when employees refuse to work.

Picketing: It is when employees who are taking industrial action stand outside their place of work to
prevent or protest at the delivery of goods, arrival and departure of other employees, etc.

Work to rule: is when rules are strictly obeyed so that work is slowed down.

Go Slow: is when employees do their normal tasks but more slowly than usual.

Non-Cooperation: is when employees refuse to comply with new working practices.

Overtime-Ban: is when employees refuse to work longer that their normal working hours.

No-Strike Agreement: is reached when trade unions and management agree to have pay disputes
settled by an independent arbitrator instead of taking strike action.

Arbitrator: listens to both sides in the industrial dispute (trade union and management) and then gives a
ruling in what they think is fair to both sides.

Lock-Out: employees are locked out of their workplace by the employers.

Worker participation: occurs when employees contribute to decision-making in the business.

Works councils: are committees of workers who are consulted or informed an matters that affect
employees.

Market: A market is where buyers and sellers come together to exchange products for money; this will
not usually be a single location.

Product-orientated business: A product-orientated business is one whose main focus of activity is on
the product itself.

Market-orientated business: A market-orientated business is one which carries out market research to
find out consumer wants before a product is developed and produced.

Marketing budget: A marketing budget is a financial plan for the marketing of a product or a product
range for some specified period of time. It specifies how much money is available to market the product
or range, so that the Marketing department now how much they may spend.

Primary research: is the collection and collation of original data via direct contact with potential or
existing customers. Also called field research.

Secondary research: is the use of information that has already been collected and is available for use by
others. Also called desk research.

Questionnaire: A questionnaire is a set of questions to be answered as a means of collecting data for
market research.

Consumer panels: are groups of people who agree to provide information about a specific product or
general spending patterns over a period of time.

Random sample: A random sample is when people are selected at random as a source of information
for market research.

Quota sample: A quota sample is when people are selected on the basis of certain characteristics (e.g.
age, gender or income) as a source of information for market research.

Brand name: The brand name is the unique name of a product that distinguishes it from other brands.

Brand loyalty: is when consumers keep buying the same brand again and again instead of choosing a
competitor's brand.

Brand image: is an image or identity given to a product which gives it a personality of its own and
distinguishes it from its competitors' brands.

Packaging: is the physical container or wrapping for a product. It is also used for promotion and selling
appeal.

Product life cycle: The product life cycle describes the stages a product will pass through from its
introduction, through its growth until it is mature and then finally its decline.

Cost-plus pricing: is the cost of manufacturing the product plus profit mark-up.

Penetration pricing: is when the price is set lower than the competitors' prices in order to be able to
enter a new market.

Price skimming: is where a high price is set for a new product on the market.

Competitive pricing: is when the product is priced in line with or just below competitors' prices to try to
capture more of the market.