A 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
The structure of different levels of aurthority in a business organisation, one on top of the other.
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Line manager
An employee who is responsible for overseeing the work of others further down the hierarchy.
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Subordinates
Workers in the hierarchy who work under the control of more senior worker.
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Chain of command
The path (or chain) down which orders (or commands) are passed. In a company this goes from a board of directors down to the workers in the organisation.
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Delayering
Removing layers of management and workers in the hierarchy so that there are fewer workers in the chain of command.
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Empowerment
Giving more responsibility to workers who report directly to another worker in an organisation.
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Downsizing
When a business employs fewer workers to produce the same amount, through increase in productivity.
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Span of control
The number of workers who report directly to another worker in an organisation.
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Delegation
Passing down authority for work to another worker further down the hierarchy.
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Centralization
A type of business where decisions are made at the center and then passed down the span of control.
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Decentralization
A type of business where decision making is passed away from the center and down the span of control.
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Communication
About messages that are passed between a sender and a receiver.
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Internal communication
Takes place inside a business, and external communication takes place with people outside of the business.
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Channel of communication
The path taken by a message, such as horizontal (workers of the same level), vertical (workers at different levels) and grapevine (informal communication).
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Remuneration
The reward for work
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Manual or blue collar workers
Workers who mainly do physical work.
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Non manual or white collar workers
Workers who mainly do office work.
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Wages
Tend to be paid for working a fixed number of hours per week with overtime being paid ontop.
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Salary
An income expressed in a yearly figure usually for non manual workers.
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Piece rate
When workers are paid based on each piece of output.
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Commission
Paid based on how much a worker sells, and a bonus is paid for achieving a target.
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Free lance workers
Tend to be self employed and complete a task for a business in return for payment.
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Fringe benefits
Payments in kind over and above the wage or salary, such as a company car.
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Other cards in this set
Card 2
Front
Organisation chart
Back
A diagram which shows the internal structure of an organisation.
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