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Chapter 7

Chapter 7

Management (MGT)
Course Code
Chris Bovaird

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Chapter 7
Organizational structure specification of the jobs to be done within a business and how
those jobs relate to one another
Organization chart a physical depiction of the company’s structure showing employee
titles and their relationship to one another
Chain of command reporting relationships within a business; the flow of decision
making power in a firm
Specialization determining who will do that
Departmentalization determining how people performing certain tasks can best be
grouped together
Job specialization the process of identifying the specific jobs that need to be done and
designating the people who will perform them
Advantages perform more efficiently
oEasier to learn
oEasier to replace people who leave the organization
Disadvantages too narrowly defined
oPeople get bored
oDerives less satisfaction from their jobs
oLose sight of how their contributions fit into the overall organization
Departmentalization the process of grouping jobs into logical units
Profit centre a separate company unit responsible for its own costs and profits
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Decision making
1.Assigning tasks determining who can make decisions and specifying how they
should be made
a.Responsibility - duty to perform an assigned task
b.Authority - power to make the decisions necessary to complete their
2.Performing tasks implementing decisions that have been made
a.Delegation begins when a manager assigns a task to a subordinate
b.Accountability - falls to the subordinate, who must when complete the
3.Distributing authority –determining whether the organization is to be centralized
or decentralized
1.Decide on the nature of the work to be done
2.Match the job with skills of subordinates
3.Make sure the person chosen understands the objectives he or she is supposed to
4.Make sure subordinates have the time and training necessary to do the task
Trouble delegating effectively (small business)
1.The feeling that employees can never do anything as well as they can
2.The fear that something will go wrong if someone else takes over a job
3.The lack of time for long-range planning because they are bogged down in day-to-day
4.The sense of being in the dark about industry trends and competitive products
because of the time they devote to day to day operations
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