AFM280 Chapter Notes - Chapter 14: Organizational Chart, Organizational Structure, Job Performance

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM280
• Professor: D'arcy Delamere

Document Summary

Organizational structure formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company. Organizational chart a drawing that represents every job in the organization and the formal reporting relationships between those jobs. Work specialization the degree to which tasks in an organization are divided into separate jobs. Chain of command specifies who reports to whom; signifies formal authority relationships. Span of control represents how many employees each manager in the organization has responsibility for. Centralization aspect of structure that dictates where decisions are formally made in organizations. Formalization the degree to which rules and procedures are used to standardize behaviors and decisions in an organization. Mechanistic organizations efficient, rigid, predictable, and standardized organizations that thrive in stable environments. Organic organizations flexible, adaptive, outward-focused organizations that thrive in dynamic environments. Organizational design the process of creating, selecting, or changing the structure of an organization.