4.1 - Organisational Structures Flashcards
Organisational Structure
The way a business arranges itself to carry out its activity
Organisational Chart
Is a plan showing the roles of, and relationships between, all the employees on a business.
Line Manager
An employee’s immediate superior or boss
Authority
The power to control others and to make decisions
The span of control
The number of employees managed directly by another employee
Levels of hierarchy
The layers pf authority within a business
The chain of command
The line of authority within a business through which communication passes
Delayering
The removal of one or more levels of hierarchy from a business”s organisational structure
Delegation
The passing down of authority to more junior employees
Communication
Is the exchange of information betweem two or more people
Decentralisation
Allows employees working in all areas of the business to take decisions
Centralisation
Occurs when a small number of senior managers in a business take all the important decisions
What are directors?
- Establish the business’s overall goals
- Set long-term plans & targets for the business
What are managers?
- Work to achieve the short & long term targets set by the directors
- May be responsible for function within the business. E.g. Marketing or finance
Shop floor workers or operatives
- Carry out the business’s basic duties or activities. These could be working on a production line, serving customers in a shop.
