A diagram which shows the internal structure of an organisation.
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What is hierarchy?
The structure of the different levels of authority in a business organisation, one on top of the other.
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What is a line manager?
An employee who is responsible for overseeing the work of others further down the hierarchy of the organisation.
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What is authority?
The right to decide what to do in a situation, to take command and be able to make decisions without referring to anyone else.
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What are subordinates?
Workers in the hierarchy who work under the control of a more senior worker.
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What is the chain of command?
The path/chain down which orders/commands are passed.
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What is the span of control?
The number of people who report directly to another worker in the organisation.
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What is delegation?
Passing down authority for work to another worker further down in the hierarchy.
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What is delayering?
Removing layers of management so that there is a shorter chain of command.
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What is empowerment?
Giving more responsibility to workers further down the chain of command, in order to motivate them.
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What are functions?
Tasks that have to be completed.
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What are three types of functions?
Production, finance and marketing.
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What is 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. This sytem can be slow to respond to changes in the market.
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What is decentralisation?
A type of business organisation where decision making is given to smaller parts of the business, giving power to those lower down the hierarchy who are closer to the customers and can respond better to their changing needs.
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What is motivation?
The desire to complete a task.
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What is the hierarchy of needs?
Maslow's invention of needs in order of importance.
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What is the order of the hierarchy of needs?
Basic needs, survival needs, safety needs, social needs, self-esteem and self-actualisation.
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What is communication?
Messages passed between a sender and a receiver.
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What is feedback?
Response to a message.
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What is internal communication?
Communication within a business organisation.
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What is external communication?
Communication between the business and an outside stakeholder.
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What makes communication effective?
Simple and clear communication, right people to right people, right time and place, and appropriate method.
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What are some barriers to effective communication?
Information given unclearly, receiver not capable of understanding, receiver not paying attention or focused, messages getting distorted through many people, and technology breaking down.
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What are payment systems?
Methods of organising the payment of workers.
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What is a time rate?
When workers are paid according to the amount of hours they work.
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What is salary?
Pay, usually of non-manual workers, expressed as an annual figure, but paid monthly.
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What is overtime?
Time worked over and above the normal working week, for which workers may receive extra payment.
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What is a piece rate?
When workers are paid according to the amount of output they produce.
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What is commission?
A payment system for sales staff where their earnings are determined by how much they sell.
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What are part-time workers?
Employees who work for only a fraction of the working week.
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What is full-time workers?
Employees who work for the whole of the working week.
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What are temporary workers?
Workers who have no permanent contract of employment with a business, so will tend to work only for a short period of time for an employer.
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What are permanent workers?
Employees with a permanent contract within the business.
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What are freelance workers?
Workers who tend to be self-employed and do particular pieces of work for a business, almost working as a supplier.
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What is a bonus?
Additional payment on top of the basic wage or salary, often given for achieving targets.
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What are fringe benefits?
Payments over and above the wage or salary.
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Other cards in this set
Card 2
Front
What is hierarchy?
Back
The structure of the different levels of authority in a business organisation, one on top of the other.
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