MGMT 1000 Chapter Notes - Chapter 7: Departmentalization, Decision-Making

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Kathleen Rodenburg

Document Summary

Organizational structure: the specification of the jobs to be done within a business and how those jobs relate to one another. Determinants of organizational structure lo-1: most organizations change their structures continually. Organization chart: a physical depiction of the company"s structure showing employee titles and their relationship to one another (chain of command) Departmentalization: the process of grouping jobs into logical units. Improves control and coordination; managers can easily see how units are performing: allows firms to treat a department as a profit center (separate unit responsible for itd own costs and profits) Functional departmentalization: organizing departments according to the function they perform (ex. Customer departmentalization: setting up departments or divisions that focus on meeting the needs of specific customers (according to types of customers likely to buy a given product) Product departmentalization: dividing an organization according to the specific products or services that are being created.