Unit 2 - Key Terms for Business Organisation

ORGANISATION TREE – shows who does what in a business and who is responsible to whom

DELEGATION – passing part of your responsibility to someone else

CHAIN OF COMMAND – the line down which orders are passed

HIERARCHY – who is where in the ‘pecking order’

SPAN OF CONTROL – the number of people under one manager

COMMUNICATION
– messages passed without feedback (one way) or with feedback (two way)

INTERNAL – within the company

EXTERNAL – outside the company


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