• The formal arrangement of jobs within an organization.
A process involving decisions about six key elements:
1. Work specialization
3. Chain of command
4. Span of control
5. Centralization and decentralization
• The degree to which tasks in the organization are divided into separate jobs
with each step completed by a different person.
• Overspecialization can result in human diseconomies from boredom, stress,
poor quality, increased absenteeism, and higher turnover.
Grouping jobs by functions performed
Grouping jobs by product line • Geographical
Grouping jobs on the basis of territory or geography
Grouping jobs on the basis of product or customer flow
Grouping jobs by type of customer and needs
Chain of Command
• The continuous line of authority that extends from upper levels to the
lowest levels of the organization and clarifies who reports to who.
The rights inherent in a managerial position to tell people what to do and to
expect them to do it.
The obligation or expectation to perform.
• Unity of Command
The concept that a person should have one boss and should report only to that
person. Span of Control
• The number of employees who can be eff