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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Hierachy
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 of 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 (or 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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Hierarchy of needs
Placing needs in an order of importance, starting with basic needs.
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Communication
Messages passed between a sender and a receiver, through a medium such as a letter or an email.
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Feedback
Response to a message by its receiver to the sender.
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Internal Communication
Communication within the business organisation.
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External Communication
Communication between the business and an outside individual or organisation like a customer, a supplier or a tax inspector.
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Channel of Communication
The path taken by a message, such as horizontal communication, vertical communication or grapevine communication.
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Formal Channels of Communication
Channels of communication that are recognised and approved by the business and by employee representatives such as trade unions.
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Informal Communication or Communication through the Grape Vine
Communication through channels that are not formally recognised by the business.
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Payment Systems
Methods of organising the payment of workers, such as piece rates or salaries.
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Manual or Blue Collar Workers
Workers who do mainly physical work like an assembly line worker.
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Wages
Tend to be paid to manual workers for working a fixed number of hours per week plus overtime.
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Overtime
Time worked over and above the basic working week.
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Basic Pay
Pay earned for working the basic working week.
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Non-Manual or White Collar Workers
Workers who do non-physical work, like an office worker or teacher.
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Salary
Pay, usually of non-manual workers, expressed as a yearly figure but paid monthly.
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Commision
Payment system usually operated for sales staff where their earnings are determined by how much they sell.
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Bonus
Addition to the basic wage or salary, for instance, for achieving a target.
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Part-Time Workers
Employees who work only for a fraction of the working week.
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Full-Time Workers
Employees who work the whole of the working week.
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Temporary Workers
Workers who have no permanent contract of employment with a business and so tend to work only for a short period of time for an employer.
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Freelance Workers
Workers who tend to be self-employed and do particular pieces of work for a business as a supplier.
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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
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
Card 4
Front
Employee who is responsible for overseeing the work of others further down the hierarchy of an organisation.
Back
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.
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