Terms

• 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, Research and Development)
• Hierarchy – the number of levels in an organisational structure
• Chain of command – route through which authority is passed down

  through an organisation
• Delegation – passing authority down through the organisational

  hierarchy to a subordinate
• Span of control - the number of subordinates reporting to each

  supervisor or manager
• Subordinate – an employee who is below another employee in the

  organisation’s hierarchy
• 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.
• 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
• Supervisor – an individual who checks and controls the work of subordinates
• Autocratic leadership – the leader makes all the decisions
• Democratic leadership – workers take part in decision-making
• Laissez-faire leadership – most of the decisions are left to the workers