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Chapter 7

Terms in this set (12)

Organisational Structure
The specification of the jobs to be done within a business and how those jobs relate to one another.
Organisational Chart
Illustrates the company's structure and show employees where they fit into the firms operations. A physical depiction of the company's structure showing employee titles and their relationship to one another.
Chain of Command
Reporting relationships within a business, the flow of decision-making power in a firm.
Departmentalisation
The process of grouping specialised jobs into logical units. Departmentalisation improves control and coordination as managers can see more easily how various units are performing.
Authority
Is the power to make decisions necessary to complete the a task.
Responsibility
The duty to perform an assigned task.
Delegation
Assigning a task to a subordinate.
Accountability
Liability of subordinates for accomplishing tasks assigned by managers.
Centralised Organisation
Top management retains the right to make most decisions that need to be made. Most lower-level decisions must be approved by upper management.
Decentralised Organisation
More decision making authority is delegated to managers in lower levels of the hierarchy.
Span of Control
How many people are supervised by an individual manager. The span of control may be wide (many subordinates reporting to a boss) or narrow (few subordinates reporting to a boss).
Wide and Narrow Span of Control
Wide Span of Control is having a large group of subordinates reporting to one boss.

Narrow Span of Control is having a small group of subordinates reporting to one boss.
THIS SET IS OFTEN IN FOLDERS WITH...