ANTA01H3 Chapter Notes -Departmentalization, Learning Organization, Informa

128 views3 pages
Published on 17 Aug 2014
School
UTSC
Department
Anthropology
Course
ANTA01H3
Ch.$7:$Organizing$The$Business$Enterprise!
!
Organizational+Structure:"Specification"of"jobs"and"how"they"relate
Each"component"has"distinct"purpose,"work"in"harmony!
Must"adopt"most"appropriate"structure!
Chain+of+Command:+reporting"relationships"and"flow"of"decision=making"power"in"a"firm."
o Organization"chart:"depiction"of"employee"titles"and"relations"to"each"other.
Organizational+ Chart: a physical depiction of the company’s structure showing
employees titles and their relationship to one another
The+building+blocks+of+an+organizational+structure+
Components+of+organizational+structure:"
! specialization"(who"will"do"what?)"and"
! departmentalization"(how"will"tasks"be"best"grouped"together?)"
o Initially"owner"performs"every"job,"with"growth"jobs"are"specialized.
1. Job+ specialization:"process" of" identifying" required" jobs," dividing" them" into"
smaller components,"and"designating"people"to"perform"them."
Advantages:" increased" efficiency," steeper" learning" curve," and" easy"
replacement"of"employees."
Disadvantages:"boring"jobs,"less"satisfaction,"loss"of"overall"company"vision"
2. Departmentalization:"process"of"grouping"jobs"into"logical"units."Each"unit"may"
be its"own"profit"center"and"performance"can"be"compared."Grouped"according"
to"function,"product,"geographic"location,"or"process"lines.""
Decision=making+ Hierarchy:"explicitly" defined" reporting" relationships." 3" steps" to"
establishing"this:"
1. Assigning+tasks"(who"makes"and"how"decisions"are"made)
Responsibility"(duty"to"perform"assigned"tasks)"and"
Authority"(the"power"to" make"decisions)"considered.
!
2. Performing+tasks"(implementing"decisions)"
Delegation"(assigning"tasks"to"a"subordinate)"
accountability"falls"to"the"subordinate."
Many"managers"have"a"fear"or"delegation."
!
3. Distributing+authority"(centralized"or"decentralized)."
a. Centralized8 organization:" most" decisions" must" be" approved" by" top" managers,"
standardization"maintained"
Typically"“Tall”"organizational"structure,"prone"to"delays"in"flow."
Typically"Narrow"span"of"control"(manager"has"few"subordinates)"
o Good"for"diversified"tasks.
b. Decentralized8 Organizations:"in" order" to" be" more" responsive" to" the"
environment,"large"companies"are"more"decentralized."
Optimal"level"of"decentralization"(balance)"should"be"achieved."
Typically"drives"prices"up,"recentralization"may"occur."
Typically"“Flat”"organizational"structure."
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.