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Chapter 8

Chapter 8 Organizational Structure.docx

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Management (MGT)
Course Code
Chris Bovaird

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Organizational Structure The specifications of the jobs done within a business and how those jobs relate to one another. This can be illustrated using Organization Chart. Ex. 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
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