COMMERCE 1BA3 Chapter Notes - Chapter 14: Shampoo, Cost Leadership, Ikea

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1BA3
• Professor: Teal Mc Ateer

Document Summary

Focus focusing on one certain market or aspect. The manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks. To achieve its goals, an organization has: to divide labour among its members, to coordinate what has been divided, to have other structural characteristics in place. 6 structural elements when we structure an organization (division and coordination; horizontal vs. vertical; departmentalization; product, geography, matric, functional, etc. : division of labour (job specialization) La(cid:271)our (cid:373)ust (cid:271)e differe(cid:374)tiated (cid:271)e(cid:272)ause e(cid:448)eryo(cid:374)e (cid:272)a(cid:374)"t do e(cid:448)erythi(cid:374)g. Domain of authority is decreased as the number of levels in the hierarchy increase. Flatter hierarchy pushes authority lower and involves people lower in more decisions: communication. With more levels, communication and coordination are harder to achieve: specialized from organizing tasks assigned to a particular job or role, vertical job specialization has visual implications.