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MGTA01H3 (583)
Chapter 7

Chapter 7

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Department
Management (MGT)
Course
MGTA01H3
Professor
Chris Bovaird
Semester
Fall

Description
Chapter 7 Organizing the Business Enterprise What is Organizational Structure Termsorganizational structure the specification of the jobs to be done within a business and within a business and how these jobs relate to one anotherThe Chain of Command Termsorganization chart a physical depiction of the companys structure showing employee titles and their relationship to one anotherchain of command reporting relationships within a business the flow of decision making power in a firmSpecialization determining who will do whatjob specialization the process of identifying the specific jobs that need to be done and designating the people who will perform thema large task such as manufacturing and selling cars is split into small tasks developing the car frame creating tires building engines advertising the product etc with each task assigned to a different individualhas certain advantages such as high efficiency in job performance easy to replace anyone who leaves the organization and easier to learn the taskhowever if job specialization is carried too far and jobs become too narrowly defined people get bored and derive less satisfaction from their jobs as well as losing sight of how their contributions contribute into the overall organizationDepartmentalizationdepartmentalization the process of grouping jobs into logical unitsprofit centre a separate company unit responsible for its own costs and profitsdepartmentalized companies benefit from the division of activitiescontrol and coordination are narrowed and made easier and top managers can see more easily how various units are performingit also allows the firm to treat a department as a profit centreby assessing profits from sales in a particular area Sears can decided whether to expand or curtail promotions in that areamanagers do not group jobs randomly but logically via some common thread or purpose consumer functional geographic andor processEstablishing the DecisionMaking Hierarchy Assigning Tasksassigning tasks determining who can make decisions and specifying how they should be maderesponsibility is the duty to perform an assigned taskauthority the power to make the decisions necessary to complete the taskdistributing authority determining whether the organization is to be centralized or decentralized
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