MGTA01H3 Chapter 8: Chapter 8 Notes
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MGTA01H3 Full Course Notes
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The building blocks of organizational structure: specialization. 2 steps in developing the structure of business: specialization & departmentalization. job specialization: the process of identifying the specific jobs that need to be done and designating the people who will perform them. one major job is to make a profit, but divided into many different components. job specialization is a natural part of organizational growth. one person cannot perform all the tasks as firms grow. Easier to replace the people who leave the organization. People get bored = less satisfaction from jobs. Lose sight of how their contributions fit into the overall organization: departmentalization. the process of grouping jobs into logical units. easier for top managers to see how diff. units are doing. allows firm to treat a department as a profit centre (a separate company unit responsible for its own costs and profits) occurs along functional, customer, product, geographic, process lines.
