BUS 374 Chapter 16: Ch. 16 Notes

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Purpose: order & coordinate actions of employees to achieve org goals: diving avail labour according to tasks performed, combining & coordinating divided tasks to ensure all accomplished. Structure of org = sys of task, reporting, authority relationships w/in which org does its work. Every org structure addresses 2 fundamental issues. Fayol"s classic principles = means of organizing. Overlapping work groups: division of labour, departmentalization = manner in which divided tasks combined & allocated to work groups for coordination, span of control = # of ppl reporting to manager, admin hierarchy. Structural policies = prescribe how employees should behave in org activities. Explicit rules set down in jd"s, manuals, office memos. Implicit rules dvlp over time as employees become accustomed to doing things certain ways. Incl. formalization of rules & procedures & centralization of decision making. Purpose of formalization: predict & control how employees behave on job.

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