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MGTA01H3 (583)
Chapter 8

BUSINESS CUSTOM 2/E VOL. 1 Chapter 8 Readings (very detailed and helpful)

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 8: Organizing the Business Enterprise WHAT IS ORGANIZATIONAL STRUCTURE? Organizational structure: the specification of the jobs to be done within a business and how those jobs relate to one another (i.e. the structure of the Red Cross will not work for the University of Toronto) The Chain of Command o Organization chart: a physical depiction of the companys structure showing employee titles and their relationship to one another (i.e. Board of DirectorsPresidentVP Finance, VP Sales, VP Production, VP HR, VP Marketing and so on) o Chain of command: reporting relationships within a business; the flow of decision- making power in a firm (i.e. the plant manager reports to the VP for production who, in turn, reports to the president) THE BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE The first step to developing the structure of any business, large or small, is twofold: Specialization: determining who will do what o Job specialization: the process of identifying the specific jobs that need to be done and designating the people who will perform them (i.e. process of making shirts) o ADVANTAGES: - Individual jobs can be performed more efficiently -jobs are easier to lean -Easier to replace people who leave the organization o DISADVANTAGES: -jobs become too narrowly defined -People get bored -Derive less satisfaction from their jobs www.notesolution.com
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