RSM100Y1 Lecture Notes - Decision-Making
23 Jan 2012
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Must develop a structure that is appropriate for its own unique situation. The chain of command: y most businesses prepare organization charts that illustrate the company s structure and show employees where they fit into the firm s operations. Look at organization chart y y chain of command: the reporting relationship within the company y when the chain of command isn t clear, many different problems can result. The first step in developing the structure of any business, large or small, is twofold: y specialization: determining who will do what y departmentalization: determining how people performing certain tasks can best be grouped together. These two tasks are the basic building blocks of all business organizations. In a very small organization, owners may perform every job. Job specialization is a natural part of organizational growth: specialization and growth y y y not a new idea nor limited to factory work y.
