SE
C
G
Business Studies
ns
GCSE - Topic 4 &
io
Glossary
pt
(Human Resources)
rO
te
as
M
1
, Internal Organisational structure ● What is internal organisational structure:
● It is how a business is organised in terms of
communication and decision-making. It identifies
specific job roles in the organisational hierarchy
and indicates who reports to whom and who is
responsible for which particular staff members.
● The organisational structure, therefore, identifies
the relationship between different employees,
departments and locations.
SE
Organisational chart
C
G
ns Functional organisational chart
io
pt
rO
● The simplest way to show how a business is
organised is to look at an organisational chart.
te
This shows the management hierarchy in a
business and works from top to bottom. Roles are
identified and lines of management and
responsibility are clearly shown.
● In this example, the Managing Director is at the
top of the organisational structure and he/she has
as
four people reporting directly to him i.e. the
different directors. The Finance Director has the
Finance Supervisors reporting to him directly. The
Accounts Assistants then report directly to the
Finance Supervisors.
M
Different job roles in the hierarchy ● Managing Director / CEO:
○ The Managing Director or CEO is the
highest ranking person in an
organisation and has ultimate authority
within the business.
○ In a plc, the CEO/MD will be voted into
position by the shareholders at the
AGM.
2
C
G
Business Studies
ns
GCSE - Topic 4 &
io
Glossary
pt
(Human Resources)
rO
te
as
M
1
, Internal Organisational structure ● What is internal organisational structure:
● It is how a business is organised in terms of
communication and decision-making. It identifies
specific job roles in the organisational hierarchy
and indicates who reports to whom and who is
responsible for which particular staff members.
● The organisational structure, therefore, identifies
the relationship between different employees,
departments and locations.
SE
Organisational chart
C
G
ns Functional organisational chart
io
pt
rO
● The simplest way to show how a business is
organised is to look at an organisational chart.
te
This shows the management hierarchy in a
business and works from top to bottom. Roles are
identified and lines of management and
responsibility are clearly shown.
● In this example, the Managing Director is at the
top of the organisational structure and he/she has
as
four people reporting directly to him i.e. the
different directors. The Finance Director has the
Finance Supervisors reporting to him directly. The
Accounts Assistants then report directly to the
Finance Supervisors.
M
Different job roles in the hierarchy ● Managing Director / CEO:
○ The Managing Director or CEO is the
highest ranking person in an
organisation and has ultimate authority
within the business.
○ In a plc, the CEO/MD will be voted into
position by the shareholders at the
AGM.
2
