Business Chapter 7 Study Guide.docx

4 Pages
109 Views
Unlock Document

Department
Business Administration
Course
BUS 201
Professor
Peter Tingling
Semester
Fall

Description
Organizational structure • The specification of the jobs to be one within a business and how those jobs relate to one another • Determinants of organizational structure o Purpose, mission, and strategy • The chain of command o Reporting relationships within a business; the flow of decision-making power in a firm o Organization charts  A physical depiction of the company’s structure showing employee titles and their relationship to one another The building blocks of organizational structure • Job specialization o The process of identifying the specific jobs that need to be done and designating the people who will perform them o Specialization and growth • Departmentalization o The process of grouping jobs into logical units o Profit centre  A separate unit responsible for its own costs and profits o Functional Departmentalization  Departmentalization according to a group’s functions or activities o Customer departmentalization  Departmentalization according to the types of customers o Product departmentalization  Dividing an organization according to the specific product or service being created o Process department  Dividing the company according to the production process used. o Geographic Departmentalization  Divided according to the area of the country/world that they serve Establishing the decision-making hierarchy • Assigning tasks o Determining who can make decisions and specifying how they should be made o Responsibility is the duty to perform an assigned task o Authority is the power to make the decisions necessary to complete the task • Performing tasks o Implementing decisions that have been made o Delegation begins when a manager assigns a task to a subordinate o Accountability the falls to the subordinate, who must complete the task o When delegating:  Decide on the nature of the work to be done  Match the job with the skills of subordinates  Make sure the person chosen understands the objectives he or she is supposed to achieve  Make sure subordinates have the time and training necessary to do the task • Distributing authority o Determining whether the organization is to be centralized or decentralized o Centralized organization  Top management retains the right to make most decisions that need to be made o Decentralized organization  Lower and middle level managers are allowed to make significant decisions • Span of control o Refers to how many people work for any individual manager • Downsizing o The planned reduction in the scope of an organizati
More Less

Related notes for BUS 201

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit