RSM100Y1 Chapter Notes - Chapter 7: Departmentalization, Profit Center, Organizational Structure
Document Summary
Determinants of a structure include many elements working together such as the organizations purpose, mission, and strategy: other affects include size, technology, and changes in environmental circumstances. Most businesses prepare organization charts: illustrates the company"s structure and show employees where they fit into the firm"s operations. Chain of command: the reporting relationships within the company. First step in developing a structure includes: specialization: determining who will do what, departmentalization: determining how many people performing certain tasks can be best grouped together. These two tasks are the basic building blocks of all business organizations** Process of identifying the specific jobs that need to be done and designating the people who will perform them. In small organizations, the owner may perform every job. As firms grow, they need to specialize in jobs. Certain advantages include; individual jobs can be performed more efficiently, the jobs are easier to learn, it is easier to replace people who leave.
