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Flashcards in Buisness 5 Deck (20)
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Describe a chain of command

The number of people a message would pass through should a member of the company wish to contact another on a business family tree


Describe a span of control

The number of people DIRECTLY Below another in a business family tree. A CEO may only have 1


3 reasons why a business organisation chart is useful

Lays down rules of effective communication
Allows a business to decide whether to delayer or downsize
Shows who is exactly responsible for certain tasks


Describe tall and flat structures in a business organisation chart and adv. of each

Tall = many layers of organisation, span of control lower so more easily manageable, many opportunities for promotion & increased motivation

Flat = many layers of organisation, quicker communication & fewer mistakes, people at bottom know those at top so more inclined to share ideas


Describe 3 ways a business can be organised

Product divisons, regional divisons, functional areas e.g marketing


Describe centralised and decentralised decisions and advantages and disadvantages of each.

Centralise decisions are made by senior managers - increased control and standardisation

Decentralised decisions are delegated to regional employees - decisions give into branches let me know local customers better. But loss of control.


Why would a business downsize or delayer (three reasons)

Reduce costs,improve efficiency, improve communication.


Describe a hierarchy

A structure of different levels of authority in a business organisation, one on top of the other.


Describe layers in a business family tree

Layers are the number of stages of responsibility in a business family tree e.g the CEO on one layer the directors on another


Describe two advantages and disadvantages of a centralised business system. Decentralised are opposite.

As two advantages it gives better standardisation & Control. As two disadvantages it can decrease motivation and Business opportunities and ideas may be lost.


Describe advantages and disadvantages of verbal communication, 2 of each

Adv - easy get feedback to check message was understood, points can be emphasised with intonation and body language

Disadv - If received information is negative receiver may directly challenge authority, no permanent record of communication


What's the difference between horizontal and vertical communication.

Horizontal communication is communication on the same levels of responsibility. Vertical communication is communication between different levels on the business organisational structure.


Give advantages and disadvantages of written communication, 2 of each.

Advantages that you can keep a record of the message, the receiver is a long time to understand and process complex information, the message can be sent to many people for efficiency, can avoid confrontation.

Disadvantages are that they send a colour immediately check if the message is received, and the quality of message depends on clarity of written communication.


Give advantages and disadvantages of using images for communication, two of each.

Advantages are that it is an engaging form of communication, and can have more impact and hold more information about particular thing such as a prototype

Disadvantages are that may not be able to hold as much details as a written piece. And may not be able to check the message has been immediately understood in certain contexts.


Describe Douglas McGregor Research

His research defines two theories theory X and theory Y.

The average theory X manager believes people must be pressurised to work and do not want responsibility, they believe that work is mainly influenced by external factors like pay schemes.

Theory Y manages find work is natural, and believe people need not be supervised and commit to Hard work. They believe motivation is an internal factor, and self actualisation is the greatest need.


What is basic pay?

Basic pay is the sum paid for the hours you work.


What is national insurance & income tax

National insurance contributions are made by an employee & employer - these pay for unemployment benefits, old-age pensions & NHS

Income tax is tax paid through a page she went system, depending on wage marital status etc.


Describe a tax code & net pay

A tax code is a code used with Inland Revenue to show deductions to gross pay through tax. Net pay is the amount of money received after tax deductions as well as other deductions


Describe total gross pay & total gross pay to date

Total gross pay is the amount of money and plus overtime without deductions. Total gross pay to date is the total gross pay to a certain time in the financial year.


What is the difference between voluntary and statutory deductions?

Voluntary deductions are where you have a choice (such as charity payments, business sports clubs clubs)

statutory deductions are deductions where don't have a choice such as income tax