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RSM100Y1 (431)
Chapter 7

Chapter7-org. design

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University of Toronto St. George
Rotman Commerce
Michael Szlachta

RSM100-Ch7 7-1. Organizational Structure Division of labour and the patterns of coordination, communication, work flow, and formal power that direct the activities of the organization. The specification of the jobs to be done within a business and how those jobs are related to one another (definition) Organization chart: illustrate the companys organizational structure Shows employees positions and how they relate to each other Demonstrates the flow of decision making power Chain of command: the reporting relationships within the company (solid lines in chart) 7-2. The building blocks of organizational structure The first step in developing the structure is twofold Specialization: determining who will do what ---Job specialization: identify the specific jobs required and designate who will do what -Small companies have fewer employees so less specialization -as organizations grow, they can hire more employees and become more efficient through specialization *Division of labour: Determining who will do what task A narrow subset of tasks required to complete the product or service Increases work efficiency: easier to learn, easier to replace people who leave www.notesolution.com
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