Class Notes (1,100,000)
CA (620,000)
UTSC (30,000)
MGT (300)
MGTA01H3 (400)
Lecture

MGTA01H3 Lecture Notes - Profit Center, Departmentalization, Defense Information Systems Agency


Department
Management (MGT)
Course Code
MGTA01H3
Professor
H Laurence

This preview shows page 1. to view the full 4 pages of the document.
Chapter 8
Organizing the Business Enterprise
1. 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)
Organization chart
A physical depiction(묘사) of the company’s structure showing employee titles and
their relationship to one another. (Refer to p111 diagram)
Chain of Command
Reporting relationships within a business; the flow of decision-making power in a firm
The first step in developing the structure (for all businesses)
-Specialization: Determining who will do what
-Departmentalization: determining how people performing certain tasks can
best be grouped together.
A. 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.
B. Departmentalization: After jobs are specialized, must be grouped.
Advantage: Division of Activities, Control/coordination easier, good view for top
managers. This allows firms to treat each department as profit centre [A separate
company unit responsible for its won costs and profits].
(Managers group jobs logically: Functional, customer, product, geographic, process
line)
You're Reading a Preview

Unlock to view full version