ANTA01H3 Chapter Notes -Departmentalization
Document Summary
7: organizing the business enterprise: organizational structure: specification of jobs and how they relate. Each component has distinct purpose, work in harmony. 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. Advantages: increased efficiency, steeper learning curve, and easy replacement of employees. Disadvantages: boring jobs, less satisfaction, loss of overall company vision: 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. Assigning tasks (who makes and how decisions are made) Delegation (assigning tasks to a subordinate) accountability falls to the subordinate. Centralized organization: most decisions must be approved by top managers, standardization maintained. Typically tall organizational structure, prone to delays in flow.
