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RSM100Y1 (431)
Chapter 6

Chapter 6

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Rotman Commerce
Michael Szlachta

Organizing the Business Enterprise1Whats organizational structureThe specialization of the jobs to be done within a business and how those jobs relate to one another1Determinants of OrganizationOrganizations purpose mission and strategyflexible organizationrapid growth stable organizationmoderate growthSize technology and change in environmental circumstance 2The Chain of CommandOrganization chartillustrates the companys structure and show employees where they fit into the firms operationsee P213Chain of Command the reporting relationships within the companyThe Building of Organizational Structure1Specializationdetermining who do whatJob Specialization the process of identifying the specific jobs that need to be done and designating the people who will perform them Specialization and growth Ads of job specialization more efficient easier to train and replace peopleBut if too narrow defineboredless satisfaction2Departmentalization The process of grouping jobs into logical unitsUnder thistle a department is treated as a profit center A separate company unit responsible for its own costs and profits Functional Departmentalization Departmentalization according to functions or activation Production marketing human resource accountingfinance department Customer Departmentalization Departmentalization according to the types of customers likely to buy a given product retail storesProduct Departmentalization Dividing an organization according to the specific product or service being created manufacturersservice Providers Geographic departmentalization Departmentalization according to the area of the country or world suppliedwwwnotesolutioncom
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