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Business Definitions: Chapter 4 - The Internal Environment

Terms in this set (24)

Senior or Executive Management
The level of management involved in the strategic planning and decision making of an organisation.
Middle Manager
Translates corporate objectives into specific projects, monitors progress of projects and supervises front-line managers.
Front-line Manager
Lowest level of managers in the hierarchy; responsible for the work of operating employees only and does not supervise other managers.
Management Structure
The ways in which parts of an organisation are formally arranged to link management, employees and functions together to achieve objectives.
Authority
The power and status to pass commands down an organisation.
Span of Control
The number of people reporting directly to one manager or supervisor.
Centralised Decision Making
Where management make decisions and pass on directions to those below them in a hierarchy; communication is downward and worker participation in decision making is non-existent.
Line Authority
Authority that relates to the main tasks of an organisation, e.g. production, distribution and sales; line managers have authority over the subordinates in their specific area.
Unity of Command
Each employee is directly responsible to one manager.
Bureacracy
Complex hierarchical management structure based on clear division of labour, downward communication, centralised decision making, line management and narrow span of control.
Benefits
All financial rewards that are not paid directly in cash to an employee, e.g. maternity leave, family leave, sick leave.
Flat Organisational Structure
An organisational structure that has a wide span of control, few management levels and a short chain of command.
Functional Structure
A form of traditional organisational structure that is based on the functions performed, e.g. finance, marketing.
Delayering
Reorganisation of an organisation by removal of one or more layers of management.
Decentralised Decision Making
Where workers are given responsibility for decision making in their own areas.
Autonomous Work Teams
Teams of workers that are given delegated authority to perform certain tasks to select who does what and how the task is performed.
Departmentalisation
The division of an organisation into departments on the basis of function (duties), product, process, customer or geographic location.
Matrix Structure
A structure that places managers and employees into project teams that cut across functional or departmental lines, and requires them to report to both functional and task management.
Network Structure
Organisational structure where functions are outsourced to other organisations; the core organisation exerts control via outsourcing contracts.
Virtual Corporation
An organisation that uses the network structure.
Discrimination
Any practice that makes distinctions between different groups based on characteristics such as sex, race, age and religion.
Policy
A written statement of the processes and procedures, rules and regulations.
Procedures
Series of interrelated steps to implement policy.
Social Responsibility
Accountability of a business towards its stakeholders; the idea that businesses should contribute to the welfare of their communities.
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