Ch.7-Organisation and management Flashcards
Organisational structure
The formal, internal framework of a business that shows how it is managed and organised
Functional departments
The main activities of business: finance, marketing, operations, human resources and research & development
Hierarchy
The number of levels in an organisational structure
Chain of command
The route through which authority is passed down through an organisation
Subordinate
An employee who is below another employee in the organisation’s hierarchy
Span of control
The number of subordinates reporting to each supervisor/manager
Delayering
Reducing the size of the hierarchy by removing one or more levels- most often middle management
Centralised organisation
One where all the important decision-making power is held at head office, or the centre
Decentralised organisation
One where the decision-making powers are passed down the organisation to lower levels
Directors
Appointed or elected members of the Board of Directors of a company who have the responsibility of determining and implementing the company’s policy. Some directors might also have a management role, for example, a marketing director.
Annual General Meeting (AGM)
A meeting for shareholders that limited companies must hold once every year
Chief Executive Officer (CEO)
The most senior manager responsible for the overall performance and success of a company.
Manager
An individual who is in charge of a certain group of tasks, or a certain area or department of a business, for example factory manager.
Supervisor
An individual who checks and controls the work of subordinates
Delegation
Passing authority down through the organisational hierarchy to a subordinate
