RSM100Y1 Study Guide - Final Guide: Departmentalization, Profit Center
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: organization"s purpose, organization"s mission, organization"s strategy, organization"s size, organization"s technology, changes in environmental circumstances. Organization charts: illustrates the company"s structure and show employees where they fit into the firm"s operations. Solid lines show the chain of command: the reporting relationships within the company. Departmentalization: determining how people performing certain tasks can best be grouped together: specialization. Job specialization: the process of identifying the specific jobs that need to be done and designating the people who will perform them. As an organization grows, job specialization may need to occur. At the early stages of a small business, an individual may perform all jobs. However, as the business expands, more people need to be hired and given specific jobs to perform. If job specialization is carried too far, jobs become boring and people get bored: departmentalization.
