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Terms and definitions for the Effective People Management Section of Edexcel GCSE Business Studies


The way in which a business is structured for it to achieve its objectives

Organisation chart

A diagram which shows the internal structure of an organisation


Structure of different levels of authority within an organisation, one on top of the other

Line manager

Employee who is responsible for overseeing the work of others further down the rganisatins heirachy


Tasks or jobs. Organisation by function means that teams exist within the organisatin according to a particular task tht must be completed.


The right to decide what to do in a situation, and to be able to take command of it to be able to make decision without reffering to anyone else


Workers in the heirachy under the control of a more senior employee

Chain of command

The path (or chain) down which orders (or commands) are passed. In a company this goes from the board of worker, through senior managers, middle managers, supervisors to the most junior employees.


Removing layers of workers from a heirachy so there are fewer links in the chain of command


Give more responsibility to workers further down the chain of command


When a business seeks to employ fewer worker to produce the same amount through an increase in productivity, often achieved through delayering

Span of control

The number of people who report directly to another worker in the organisation


Passing down of authority for work to another worker further down the organisational heirachy


A type of business where most decisions are made at the centre or core of the organisation and passed down the chain of command


A type of business where most decisions are pushed down the heirachy and away from the centre or core of the organisation


In work, the desire to complete a task

Maslows heirachy of needs

A model staing 5 categories of needs of all employees


Messages passed between a sender and receiver through a medium


Response to a message by its reciever back to its original sender

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