Chapter 7 - Organisation and Manegment Flashcards
what is meant by organisational structure?
the formal, internal framework of a business that shows how it is managed and organised
what is meant by functional departments?
the main activities of business: finance, marketing, operations, human resources and research and development
what is a hierarchy?
the number of levels in an organisational structure
what is a chain of command?
the route through which authority is passed down through an organisation
what is meant by subordinate?
an employee who is below another employee in the organisation’s hierarchy
what is meant by span of control?
the number of subordinates reporting to each supervisor/manager
what is meant by delayering?
reducing the size of the hierarchy by removing one or more levels - most often middle management
what is meant by centralised organisation?
one where all the important decision making power is held at head office or the centre
what is meant by decentralised organisation?
one where the decision making powers are passed down the organisation to lower levels
what are directors?
appointed or elected members of the Board of Directors of a company who have the responsibility for determining and implementing the company’s policy - some directors might also have management roles for example a marketing director
what is an Annual General Meeting (AGM)?
a meeting for shareholders that limited companies must hold once every year
who is the chief executive officer (CEO)?
the most senior manager responsible for the overall performance and success of a company
who is a manger?
an individual who is in charge of a certain groups of tasks, or a certain area or department of a business, for example factory manager
who is a supervisor?
an individual who checks and controls the work of subordinates
what is meant by delegation?
passing authority down through the organisational hierarchy to a subordinate
