MGT 500 Lecture Notes - Lecture 24: Departmentalization

• School: Ball State University
• Department: Management
• Course: MGT 500
• Professor: Ronda Smith

Document Summary

It defines how job tasks are formally divided, grouped, and coordinated: key elements to be addressed, work specialization, departmentalization, chain of command, span of control, centralization, decentralization, formalization, boundary spanning. Organizational structure depicts how job tasks are formally divided, grouped and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization, decentralization and formalization. A key part of organizational structure is understanding the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills and maximize their input. Element 2: departmentalization: basis by which jobs are grouped together so that common tasks can be coordinated, common bases, function, product, geography, process, customer. There are a number of options to choose from when grouping jobs; you could organize around function, product, location, process or customer.