Business Organisations

A set of flashcards to help review key concepts related to business organisations, their structures, purposes, and functional areas.

What is the primary purpose of an organisation?

To bring together groups of people to achieve a common objective or goal.

What is a common feature of successful organisations?

A shared purpose that aligns all individuals towards a collective mission.

What is meant by 'division of labour' in organisations?

The process of dividing work into different functions where individual workers specialize to increase overall efficiency.

What does a clear decision-making process in an organisation entail?

Defining how decisions are made and who has the authority to control team members.

What role does ongoing coordination play in an organisation?

Ensures that activities across teams align with the overall strategy and resources are allocated effectively.

What defines the operational structure of traditional hierarchical organisations?

Power and decision-making authority are concentrated at the top, resulting in a steep pyramid-like structure.

What are flatter organisations known for?

Reduced layers of management that promote quicker decision-making and collaboration among employees.

How does a virtual organisation operate?

Uses a network of contacts, suppliers, and freelancers to achieve goals with low overhead and flexibility.

What is the difference between for-profit and not-for-profit organisations?

For-profit organisations aim to generate profit for shareholders, while not-for-profit organisations focus on societal benefits without profit motives.

What is a sole proprietorship?

A business structure owned by one individual who has total ownership and unlimited liability.

What characterizes a partnership in business?

An organisation owned by two or more individuals who share profits and liabilities.

What are the main functions of a business?

Include product management, R&D, sourcing, production and service delivery, marketing, sales, customer service, HR, IT, legal, and finance.

What is the purpose of key performance indicators (KPIs) in organizations?

To provide quantifiable measures that show how well an organisation or its functions are performing against set objectives.

What is the concept of 'joint ventures' in business?

An arrangement where two or more organisations collaboratively work together to achieve a common goal.

What is a functional structure?

An organisational structure that groups employees based on their specialized functional areas.

What is a divisional structure?

An organisational structure that divides operations into semi-autonomous divisions based on products or geographic areas.

What is a matrix organisation?

A structure combining functional and divisional setups where employees report to both functional and project managers.