PSY BEH 11B Chapter Notes - Chapter 8: Departmentalization, Organizational Culture, Flat Organization
7 Dec 2016
School
Department
Course
Professor
Document Summary
Organizing: structuring, begins with with determining what work needs to be done. Departmentalization: the process of setting up individual departments to do specialized tasks. Economies of scale: the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase. Unity of command - each worker has to report to one boss only. Hierarchy of authority - all workers know to whom they report to. Division of labor - functions are to be divided in areas of specialization. Subordination of individual interest - goals of the team > goals of the individual. Authority - managers have the power to enforce obedience. Degree of centralization - decision making powers vary depending on size of business. Clear communication - all workers should be able to communicate each other easily. Order - materials and people should be in the right place.
