RSM100Y1 Chapter 7: Chapter 7.docx
Document Summary
Organizational structure is the specification of the jobs to be done within a business and how those jobs relate to one another. Organization charts illustrate the company"s structure and show employees where they fit into the firm"s operations. A chain of command is the reporting relationships within a company. Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them. Individual jobs can be performed more efficiently. It is easier to replace people who the leave the organization. People may derive less satisfaction from their jobs. People often lose sight of how their contributions fit into the overall organization. Departmentalization is the process of grouping jobs into logical units. It allows the firm to treat a department as a profit centre a separate unit responsible for its own costs and profits. Functional departmentalization is the departmentalization according to functions and activities.
