MGTA01H3 Chapter Notes - Chapter 8: Organizational Chart, Departmentalization, Profit Center
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MGTA01H3 Full Course Notes
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Document Summary
Organizational structure is the specification of jobs to be done within a business and how those jobs relate to one another. An organizational chart is a physical depiction of the company"s structure showing employee titles and their relationship to one another. The chain of command is reporting relationships within a business, the flow of decision-making power in a firm. The basic building blocks of all business organizations is specialization (determining who will do what) and departmentalization (determining how people performing certain tasks can be best grouped together) Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them. The advantage of job specialization is that individual jobs can be performed more efficiently, the jobs are easier to learn and it is easier to replace people who leave the organization.
