MGTA01H3 Chapter 8: Chapter 8 Notes
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MGTA01H3 Full Course Notes
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N departmentalization the process of grouping jobs into logical units profit centre a separate company unit responsible for its own costs and profits departmentalization may occur along functional, customer, product, geographic, or process lines (or any combination of these) Decide on the nature of the work to be done. Match the job with the skills of subordinates. Make sure the person chosen understands the objectives he or she is supposed to achieve. N functional structure various units are included in a group based on functions that need to be performed for the organization to reach its goals; functional structure makes use of departmentalization by function. N informal organization a network of personal interactions and relationships among employees unrelated to the firm"s formal authority structure grapevine an informal communications network that carries gossip and other information throughout an organization. Summary of learning objectives: discuss the elements that influence a firm"s organizational structure.
