AQA AS BUSS 2 key terms for Improving Organisational structuresWatch
Organisational chart: a diagram showing the lines of authority and layers of hierarchy in an organisation
Organisational hierarchy: the vertical division of authority and accountability in an organisation
Levels of Hierarchy: the number of different supervisory and management levels between the shop floor and the chief executive of an organisation
Span of Control: the number of subordinates whom a manager is required to supervise directly.
Delegation: the process of passing authority down the hierarchy from a manager to a subordinate
Responsibility: being accountable for one’s actions.
Authority: the ability or power to carry out a task
Accountability: the extent to which a named individual is held responsible for the success or failure of a particular policy, project or piece of work
Communication: the process for exchanging information or ideas between two or more individual groups
Internal Communication: the exchange of information that takes place within an organisation
External Communication: the exchange of information that takes place with individuals, groups and organisations outside the business.
One-way Communication: Communication without any feedback
Two-way Communication: Communication with feedback
Communication channel: the route through which communication occurs
Open channels of communication: any staff member is welcome to see, read or hear the discussions and conclusions
Closed channels of communication: access to the information is restricted to a named few.
Formal channels of communication: communication channels established and approved by senior management, within which any form of communication is regarded as formal
Informal channels of communication: means of passing information outside the official channels, often developed by employees themselves
Vertical communication: when information is passed up and down the chain of command.
Lateral communication: when people at the same level within an organisation pass information to each other.
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