MGMT 1000 Chapter Notes - Chapter 7: Hierarchical Organization, Departmentalization, Profit Center

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Kathleen Rodenburg

Document Summary

Centralized structure: decision-making authority is concentrated at the top of the organizational hierarchy. Decentralization structure: decision making authority is pushed down to lower levels in the hierarchy. Geographic departmentalization: organizing on the basis of geographic regions. Product departmentalization: organizing on the basis of products that are sold. Both can cause issues if taken to extreme. If company organizes by product: it can standardize manufacturing. Local decision-making is slowed and products are not tailored to a specific country"s customers. Organizational structure: specification of the jobs to be done within a business and how those jobs relate to one another. Organization chart: physical depiction of the company"s structure showing employee titles and their relationship to one another. Job specialization: is the process of identifying the specific jobs that need to be done and designating the people who will perform. Departmentalization: process of grouping jobs into logical units (a separate unit responsible for its.