business unit 2 (4)

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  • business unit 2
    • organisational structure
      • businesses are organised into hierachies
      • there are centralised and de-centralised businesses
        • centralised is where all major decisions are made by one person or a few managers at the top of the hierarchy
          • it is good as it means that policies will be uniform throughout the business.
            • on the other hand It can also slow down decision making and decisions can take a long time to filter through to employees.
        • de-centralised means the decision making is spread out  for example power might be delegated to regional managers or junior employees
          • its good as decision can be made more quickly and more targeted to the local area and market
            • on the other hand inconsistencies may develop between departments and the decision makers might not know the aims of the business
      • long chains of communication are bad because they mean decision take along time to be passed up and down the hierarchy, this can leave people at the bottom feeling isolated and demoralised
    • training
      • induction training- for new members of staff,
      • on the job training this is where the person learns to do their job by being shown how to do it- it is cost effective
      • off the job training- is when the person learns away from the work place, it is more expensive than on the job training but also more expensive
      • appraisal helps identify training needs

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