Business 3.4 Definitions

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Organisation
The way in which a business is structured for it to achieve its objectives
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Organisation Chart
A diagram which shows the internal structure of an organisation
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Hierarchy
Structure of different levels of authority in a business organisation, one on top of the other
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Line Manager
Employee who is responsible for overseeing the work of others further down the hierarchy of an organisation
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Function
Tasks or jobs. Organisation by function means that a business is organised according to tasks that have to be completed, such as production or finance
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Authority
The right to decide what to do in a situation and take command or it to be able to make decisions without referring to anyone else
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Subordinate
Workers in the hierarchy who work under the control of a more senior worker
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Chain of Command
The path (or chain) down which orders (for commands) are passed. In a company, this goes from the board of directors down to other workers in the organisation
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Delayering
Removing layers of management and workers in a hierarchy so that there are fewer workers in the chain of command
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Empowerment
Giving more responsibility to workers further down the chain of command in a hierarchy
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Downsizing
When a business employs fewer workers to produce the same amount through increases in productivity which can be achieved through delayering
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Span of Control
The number of people who report directly to another worker in an organisation
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Delegation
Passing down of authority for work to another worker further down the hierarchy of the organisation
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Centralisation
A type of business organisation where decisions are made at the centre or core of the organisation and then passed down the chain of command
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Decentralisation
A type of business organisation where decision-making is pushed down the hierarchy and away from the centre of the organisation
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Motivation
In work, the desire to complete a task
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Other cards in this set

Card 2

Front

A diagram which shows the internal structure of an organisation

Back

Organisation Chart

Card 3

Front

Structure of different levels of authority in a business organisation, one on top of the other

Back

Preview of the back of card 3

Card 4

Front

Employee who is responsible for overseeing the work of others further down the hierarchy of an organisation

Back

Preview of the back of card 4

Card 5

Front

Tasks or jobs. Organisation by function means that a business is organised according to tasks that have to be completed, such as production or finance

Back

Preview of the back of card 5
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