Organisational Structure
What is a functional structure?
Total cost divided by output
People with authority that co-ordinate and communicate.
What is a manager?
A forecast of expected revenues and planned expenses for a future period of time.
What is a budget?
Guidelines on how decisions are made within the business, i.e. a set of rules or principles to be followed in a particular area.
What are policies?
An organisational structure with many levels of hierarchy.
What is a tall structure?
A process where a set number of one product/service is produced each time.
What is batch production?
In times of crisis.
When is autocratic leadership useful?
Cash inflow minus cash outflow
How do you calculate net cash flow?
Staff require approval from seniors before task completion.
What are authorisation procedures?
An organisational structure with wide spans of control.
What is a flat structure?
Consulting with workers to find ways to improve production (continuous improvement).
What is Kaizen?
Subordinates are consulted but the leader retains decision-making power.
What is paternalistic leadership?
Comparing budgeted figures with actual figures and analysing the difference.
What is variance analysis?
External organisations, usually an auditing firm, analyse business data and compare financial results to records in order to identify any omissions, errors or fraudulent activity.
What are independent audits?
Removing levels of management from the hierarchy of an organisation.
What is de-layering?
When a maximum amount of goods/services are made using minimal amounts of inputs with minimal waste.
When is a business' production process effective?
People that influence the business culture and support decision-making.
What is a leader?
The number of sales needed to cover total costs.
What is a break-even point?
A self-regulating business model that helps a business be accountable to itself, the marketplace, the environment and the community.
What is corporate social responsibility?
A visual diagram that shows the organisational structure of a business.
What is an organisational chart?
(Actual output divided by maximum output) x 100
What is the formula for capacity utilisation?
Rangatiratanga
What is the Māori business concept of leadership?
Costs that change in accordance with output.
What are variable costs?
1. Economic sustainability
2. Environmental sustainability
3. Social sustainability
4. Cultural sustainability
What are the four parts of quadruple bottom line?