Textbook Notes (228,187)
CA (157,329)
UTSG (10,979)
Rotman Commerce (1,035)
RSM100Y1 (432)
Chapter 7

Chapter 7

4 Pages
103 Views
Winter 2011

Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta
Chapter
7

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Organizing the Business Enterprise
1Whats organizational structure
The specialization of the jobs to be done within a business and how those jobs relate
to one another
1.Determinants of Organization
?Organizations purpose, mission, and strategyflexible organizationrapid growth;
stable organizationmoderate growth
Size, technology, and change in environmental circumstance
2.The Chain of Command
Organization chart illustrates the company‘s structure and show employees
where they fit into the firms operation. see P213
Chain of Command the reporting relationships within the company
 The Building of Organizational Structure
1.Specialization: determining who do what
Job 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 people
But if too narrow define, bored, less satisfaction
2.Departmentalization: The process of grouping jobs into logical units
Under 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, accounting & finance
department)
? Customer Departmentalization: Departmentalization according to the types of
customers likely to buy a given product.  ,  retail stores
?Product Departmentalization: Dividing an organization according to the specific
product or service being created. (manufacturers & service Providers  )
?Geographic departmentalization: Departmentalization according to the area of the
country or world supplied
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Description
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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