Unit 3

Divisional structures: Is the different segments of a business. The teams are organized in set of divisions, where each division corresponds to the end product or services provided by the organization. Each division has its own set of functional units like research, manufacturing, marketing etc.

Levels of Hierarchy: Is a structure of different levels of authority in a business organisation, one on top of the other.

Chains of Command: The path(or chain) down which orders (or commands) are passed. In a company, this goes from the board of directors down to other workers in the organisation.

Centralisation: A type of business organisation where decisions are made at the centre or core of the organisation and then passed doen the chain of command.

Decentalisation: A type of business organisation where decision-making is pusked down the hierarchy and away from the centre of the organisation.