ECON 308 Midterm: Midterm 2 Study Guide Part 1

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An important element of organizational architecture of a firm is partitioning all tasks within the firm to smaller blocks of tasks & assigning them to individuals and /or teams. For example: when you start a business, you are one person (owner, manager and worker). But when your business outgrows, you don"t have time to do all of that so you hire people to do it on your behalf. Variety of tasks to be completed (assembly line worker works on the right door of the car and the task is to put all 6 bolts in the door) Decision authority to determine when & how to best complete the tasks (for example: sectary must decide to continue typing or answer the phone call) Decisions are made at the top management level. If market shares of firms are stable (every day you make the same decision)

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