Textbook Notes (368,434)
Canada (161,878)
RSM100Y1 (431)
Chapter 7

Chapter 7 summary

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Rotman Commerce
Michael Szlachta

Chapter 7 What is organizational structure? Organizational structure the specification of the jobs to be done within a business and how those jobs relate to one another Many elements work together to determine an organizations structure. Chief among these are the organizations purpose, mission, and strategy Organization charts illustrates the companys structure and shows employees where they fit into the firms operations Chain of command the reporting relationships within the company For example, the plant manager reports to the vice president of production, who, in turn, reports to the president The Building Blocks of an Organizational Structure Job specialization the process of identifying the specific jobs that need to be done and designating the people who will perform them Advantagesindividual jobs can be performed more efficiently, the jobs are easier to learn, and it is easier to replace people who leave the organization Departmentalization the process of grouping jobs into logical units Control and coordination are made easier Top managers can see how the various units are performing Allows the firm to treat a department as a profit centrea separate unit responsible for its own costs and profits Functional departmentalization departmentalization according to functions or activities Such firms have production, marketing and sales, human resource, and accounting and finance departments Customer departmentalization departmentalization according to the types of customers likely to buy a given product The store is more efficient and customers get better service www.notesolution.com
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