MGMT 1000 Chapter Notes - Chapter 7: Profit Center, Liquid Oxygen, Departmentalization

• 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. Lo-2 building blocks of the organizational structure. Job specialization is the process of identifying the specific jobs that need to be done and designating the people who will perform them. Departmentalization: the process of grouping jobs into logical units. Functional: organizing departments according to the function they perform (marketing, finance, production) Involves setting up departments or divisions that focus on meeting the needs of specific customers. Product: means dividing an organization according to the specific products/services that are being created. Process: dividing the company according to the production process being used. Geographic: means creating departments based on the area of the country or world. Responsibility: the duty to perform an assigned task. Accountability: liability of subordinates for accomplishing tasks given by managers. Centralized organization: top-management retains the right to make most decisions.