Introduction to Management - Chapter 4: Organising the Business

Vocabulary practice flashcards covering fundamental concepts, structures, principles, and terms from Chapter 4: Organising the Business.

Organising

The process of arranging work, people and resources so that organisational goals can be achieved.

Clarity

An organising outcome where everyone knows what their job is and what is expected.

Coordination

The organising function that connects tasks in the right sequence so people and departments work together instead of against each other.

Resource Use

The arrangement of time, people, money and materials where they are needed to create value.

Accountability

Being answerable for results and outcomes when designated as responsible for an important task.

Organisational Structure

The framework or "skeleton" of an organisation that illustrates how work and authority are arranged.

Organisation Chart

A visual map of reporting relationships that shows who reports to whom, where each job fits, and where authority sits.

Division of Work

Breaking a large job into manageable tasks according to specific tasks, skills and responsibilities rather than having everyone do everything.

Departmentalisation

The process of grouping related activities and similar work together to make coordination easier.

Functional Departmentalisation

Grouping activities by business functions, such as Marketing, Finance, Operations, and Human Resources.

Product Departmentalisation

Grouping activities based on the specific goods or services offered, such as Food, Beverages, and Merchandise.

Customer Departmentalisation

Grouping activities according to different target consumer groups, such as Students, Corporate clients, and Retail customers.

Location Departmentalisation

Grouping activities based on geographic territories or sites, such as Shah Alam, Kuala Lumpur, and Johor.

Authority

The legitimate right to make decisions and direct work.

Responsibility

The obligation or duty to complete an assigned task.

Delegation

Assigning work and appropriate authority to another person while the manager remains accountable for the overall result.

Span of Management

The number of employees who report directly to one manager.

Narrow Span

A span of management with fewer direct reports, offering closer guidance and more direct supervision, but requiring more management levels.

Wide Span

A span of management with more direct reports, resulting in fewer management levels and potential efficiency, but giving the manager less time per employee.

Centralisation

An approach where major decisions are concentrated at higher management levels.

Decentralisation

An approach where more decision-making authority is delegated to lower management levels or local units.

Flat Structure

A contemporary organisational structure featuring fewer management layers, common in small or entrepreneurial businesses.

Team-Based Structure

A contemporary organisational design where individuals from different roles work together around a specific task or project.

Virtual / Flexible Structure

An organisational design where teams work across locations using digital communication and collaboration tools.