MGTA01H3 Lecture : MGTA03 CHAPTER 8.docx
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MGTA01H3 Full Course Notes
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Document Summary
All businesses have common structural and operating components; how these components look and fit together varies from company to company. Organizational structure: the specification of the jobs to be done within a business and how those jobs relate to one another. Every company must develop the most appropriate structure for its own unique situation. Organization chart: a physical depiction of the company"s structure showing employee titles and their relationship to one another. Chain of command: reporting relationships within a business; the flow of decision-making power in a firm. When this is unclear, many problems can result. The first step in developing the structure of any business is two-fold: specialization: determining who will do what, departmentalization: determining how people performing certain tasks can best be grouped together. In a very small organization, the owner may perform every job. Departmentalization: the process of grouping jobs into logical units.
