Business unit 2 booklet 4 definitions

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Organisation chart
A plan showing the roles of, and relationships between, all the employees in a business
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Span of control
The number of employees managed directly by a manager
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Layers of management
The layers of authority in a business
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Centralisation
Occurs when a small number of senior managers in a business make all the important decisions
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Decentralisation
Allows employees working in all areas of the business to take decisions
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Subordinate
The employees that the line manager is in charge of
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Line manager
An employee's immediate superior boss
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Flat organisation structures
This has wide spans of control and few levels of hierachy
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Tall organisation structures
This has narrow spans of control and larger number of levels of hierarchy
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Job description
A document produced by a business that tells candidates about the nature of the job that they will be doing and the tasks that they will be expected to complete
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Person specification
A document that sets out what kind of skills and qualities a person needs
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Internal recruitment
Appointing an existing employee of the business to fill a vacancy
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External recruitment
Appointing an employee of another business to fill a vacancy
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Induction training
The first type of training for new empoyees
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On-the-job training
Training within the workplace
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Off-the-job
Training outside the workplace
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Appraisal
Making a judgement about an employee's performance within a business over a period of time
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Autocratic managers
Managers who believe in taking all decisions and just passing instructions to worers
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Democratic managers
Managers who involve their subordinates in decision making
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Flow porduction
Using a production line to continuously manufacture product. Each product will be identical to the last
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Lean production
Revolves around the principle that many firms are wasteful. Businesses try to reduce waste in order to lower their costs.
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Kaizen
Kaizen gives workers authority to make decisions about how to improve the efficiency.
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Just-in-time
Ordering products/raw materials when they are needed so storage isn't necessary
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Cell production
Uses teams to assemble a whole product rather than workers completing one task on a production line
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Economies of scale
The reasons why the cost of producing a product falls as a business grows
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Dis-economies of scale
When a business grows too large and the cost of producing their products begin to rise again
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Quality product
Goods or services that meet customers expectations
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Quality standards
The expectations that the customers have of a product
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Total Quality Management (TQM)
Standards are checked periodically throughout the production process rather than just at the end
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Other cards in this set

Card 2

Front

The number of employees managed directly by a manager

Back

Span of control

Card 3

Front

The layers of authority in a business

Back

Preview of the back of card 3

Card 4

Front

Occurs when a small number of senior managers in a business make all the important decisions

Back

Preview of the back of card 4

Card 5

Front

Allows employees working in all areas of the business to take decisions

Back

Preview of the back of card 5
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