MGTA01H3 Lecture Notes - Profit Center, Departmentalization, Defense Information Systems Agency
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MGTA01H3 Full Course Notes
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Organizing the business enterprise: the elements that influence a firm"s organizational structure. Organizational structure: the specification of the jobs to be done within a business and how those jobs relate to one another. (each firm has its own unique situation) A physical depiction( ) of the company"s structure showing employee titles and their relationship to one another. (refer to p111 diagram) Reporting relationships within a business; the flow of decision-making power in a firm. The first step in developing the structure (for all businesses) Departmentalization: determining how people performing certain tasks can best be grouped together: job specialization: the process of identifying the specific jobs that need to be done and designating the people who will perform them. Job specialization becomes necessary when the firm grows. Advantages: more efficient, easier to learn, easier to replace. Disa: simple-bored, lose sight of contributions: departmentalization: after jobs are specialized, must be grouped. Advantage: division of activities, control/coordination easier, good view for top managers.