RSM100Y1 Chapter 7: Chapter 7 - Organizing the Business Enterprise
Document Summary
Organizational structure is the specification of jobs to be done within a business and how those. Chief among the elements that create organizational structure are the organization"s purpose, jobs relate to one another mission and strategy. Other factors are size, technology and changes in environmental circumstances. Many businesses prepare organization charts that illustrate the company"s structure and show employees where they fit into the firm"s operations. The solid lines that connect the boxes in an organization chart represent the chain of command. Departmentalization: determining how people performing certain tasks can best be grouped together. Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them. Each business has only one main job, to make money for example, this job is then broken into smaller components which are then assigned to individuals or groups. Job specialization is a natural part of organizational growth.
