RSM100Y1 Chapter 7: Chapter7-org. design

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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) 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. 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: departmentalization: definition: the process of grouping jobs into logical units (how employees and their activities are grouped together) a fundamental strategy for coordinating organizational activities because it affects behavior: creates common supervision, formal work teams.

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