Economies of scale Scale: being efficient by creating the lowest per unit cost of production and/or

and scope marketing; and Scope: being efficient by sharing a cost of an activity across
product lines.

Ergonomics An approach to job design by focusing on the worker and considering how
s/he interacts with the machine.

Fiduciary Holding or investing of property or assets that have been entrusted to an

responsibility individual or organisation for a beneficiary

Insider Trading Trading in a security (buying or selling a stock) based on material information
that is not available to the general public.

Outplacement Assistance provided to employees who are losing their jobs

Peter Principle In any hierarchy a person is promoted until that person has reached his/her
level of maximum competence. Once this occurs there is no further
promotion.

Buy Out The purchase of the ownership, controlling interest, shares etc of a company.
May also occur when a company is sold to its top managers.

Coalface The place where the actual physical work gets done as opposed to managing
and administration.

360 feedback multilayer feedback from peers, supplies, other levels of management, and
internal and external customers
Expatriates non-citizen of the country in which they are working
Fringe Benefit a reward beyond the basic pay for the job, examples can range from
subsidized meals and travel to pension, holidays and sickness benefits
Golden Handcuffs A financial inducement to an employee to stay, so favorable that he or she
would find it difficult to leave the organization
Golden Handshake a relatively large sum of money given in the forms of severance pay for a
departure that is usually ahead of normal retirement or the end of a contract
Hall test in market research this is the technique of asking people their opinions of the
adverting, packaging and presentation of a product
Hedonism in psychology this refers to the idea that all of our behavior stems from the
motivation to pursue pleasure and avoid pain; in philosophy the doctrine that
it is our ethical duty to do so