RSM100Y1 Chapter Notes - Chapter 7: Departmentalization, Profit Center, Learning Organization
Document Summary
Organizational structure is the specification of the jobs to be done within a business and how those jobs relate to one another. Each organization must develop a structure that meets its own specific needs. This includes for-profit, not-for-profit and government agencies. Size, technology, and changes in environmental circumstances. Structure may be carefully planned or develop as the company evolves. Organization chart illustrates the company"s structure and show employees where they fit into the firm"s operations. Shows employees" positions and how they relate to each other. Demonstrates the flow of decision making power. Chain of command is the reporting relationships within the company. Departmentalization: determine how people performing certain tasks can best be grouped together. Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them. Small companies have fewer employees so less specialization. As organizations grow, they can hire more employee and become more efficient through specialization.
