Page 91 - Cambridge IGCSE Business Studies

7 Organisation

and management

Introduction
Objectives

All businesses, except for a sole trader, will need some form of organisational
In this chapter you will
structure. Everyone in the business – even if it is just two partners – needs to know
learn about:
their roles and responsibilities and what the roles and responsibilities are of others
■ simple organisation charts in the business. This will help the business to operate eff iciently.
■ the role of management In this chapter you will learn the important features of organisational structure and
■ leadership styles how these can be represented on a diagram.
■ trade unions.

You will also study the different styles of leadership and the importance of
management functions.

KEY TERMS
Simple organisation charts
Organisational structure: the
formal, internal, framework of As a business grows in size it divides into separate departments. Each
a business that shows how it is
department may specialise in the main functional areas of business such as
managed and organised.
marketing or fi nance. Th e functional departments of Company A are shown
Functional departments: the
in Figure 7.1.
main activities of business: 89

finance, marketing, operations, This is a very simple organisation chart. Now let’s look at a more detailed

human resources and research example. The chart in Figure 7.2 is also of Company A, but this time it shows the
and development. structure of the company and its departments in more detail.

Figure 7.1 The functional departments of business