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| Question | Answer |
| Organisation | The way in which a business in structured for it to achieve its objectives |
| Organisation Chart | A diagram which shows the internal structure of an organisation |
| Hierarchy | Structure of different levels of authority in a business organisation, one on top of the other |
| Line Manager | Employee who is responsible for overseeing the work of others further down the hierarchy of an organisation |
| Function | Tasks or jobs. Organisation by functions means that a business is organised according to tasks that have to be completed, such as production or finance |
| Authority | The right to decide what to do in a situation and take command of it to be able to make decisions without referring to anyone else |
| Subordinate | Workers in the hierarchy who work under the control of a more senior worker |
| Chain of Command | The path (or chain) down which orders (or commands) are passed. In a company, this goes from the board of directors down to other workers in the organisation |
| Delayering | Removing layers of management and workers in a hierarchy so that there are fewer workers in the chain of command |
| Empowerment | Giving more responsibility to workers further down the chain of command in a hierarchy |
| Downsizing | When a business employs fewer workers to produce the same amount through increases in productivity which can be achieved through delayering |
| Span of Control | The number of people who report directly to another worker in an organisation |
| Delegation | Passing down of authority to work to another worker further down the hierarchy of the organisation |
| Centralisation | A type of business organisation where decisions are made at the centre or core of the organisation and then passed down the chain of command |
| Decentralisation | A type of business organisation where decision-making is pushed down the hierarchy and away from the centre of the organisation |
| Motivation | In work, the desire to complete a task |
| Hierarchy of Needs | Placing needs in an order of importance, starting with basic needs |
| Communication | Messages passed between sender and a receiver, through a medium such as a letter or an email |
| Feedback | Response to a message by its receiver to the sender |
| Internal Communication | Communication within the business organisation |
| External Communication | Communication between the business and an outside individual or organisation like a customer, a supplier or a tax inspector |
| Channel of Communication | The path taken by a message, such as horizontal communication, vertical communication or grapevine communication |
| Formal Channels of Communication | Channels of communication that are recognised and approved by the business and by employee representatives such as trade unions |
| Informal communication or communication through the grapevine | Communication through channels are not formally recognised by the business |
| Payment systems | Methods of organising the payment of workers, such as piece rates or salaries |
| Manual or blue collar workers | Workers who do mainly physical work like an assembly line worker |
| Wages | Tend to be paid to manual workers for working a fixed number of hours per week plus overtime |
| Overtime | Time worked over and above the basic working week |
| Basic Pay | Pay earned for working the basic working week |
| Non-manual or white collar workers | Worker who do non-physical work, like an office worker or teacher |
| Salary | Pay, usually of non-manual workers, expressed as a yearly figure but paid monthly |
| Commission | Payment system usually operated for sales staff where their earnings are determined by how much they sell |
| Bonus | Addition to the basic wage or salary, for instance, for achieving a target |
| Part-time workers | Employees who work only for a fraction of the working week |
| Full-time workers | Employees who work the whole of the working week |
| Temporary workers | Workers who have no permanent contract of employment with a business and so tend to work only for a short period of time for an employer |
| Freelance workers | Workers who tend to be self-employed and do particular pieces of work for a business as a supplier |
| Fringe Benefits | Payments in kind over and above the wage or salary, such as a company car |
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