The specifications of the jobs done within a business and how those jobs relate to one another. This can
be illustrated using Organization Chart.
In an organization chart to report to members you have to go through the Chain of command –
Reporting relationships within a business; the flow of decision-making power in a firm (Ex. Only VP can
speak to the President)
To make this ^ you would need these following steps:
Building blocks of Organizational Structure
Specialization – The process of identifying the specific jobs that need to be done and designating the
people who will perform them (McDonalds: People cook patties, people put dressing, others package)
It has an advantage because individuals can perform tasks more efficiently, less stuff to learn, and easy
to replace if people want to leave.
Departmentalization – Once jobs are specialized, it goes through the process of grouping jobs into
logical units. Each department can have their own profit centre a separate unit responsible for its own
cost and profit
Establishing the decision-making hierarchy
Settings these departments into a Chain of Command after assigning these tasks:
Assigning tasks – Determining who can make decisions and specifying how they should be made
Performing tasks – implementing decisions that have been made. This is Delegation (Assignment of a
task authorized by a manager to a subordinate). Delegation can be a huge risk.
Distribution Authority – Autho