Chapter 10 - Chapter 10 Organizing: the process through...

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Chapter 10 Organizing: the process through which managers design an organization’s structure Six key elements of organizational design that involves decision making: work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization Work specialization: an entire work activity is not done by one individual, but instead is broken down into tasks with each task completed by a different person o Adam Smith: first identified division of labor and concluded that it contributed to increased employee productivity Departmentalization: after work activities have been divided up through work specialization into separate job tasks, common job tasks need to be grouped back together so the work can be done in a coordinated, integrated way o Process Departmentalization: work activities follow a natural processing flow of products or even of customers o Customer Departmentalization: Helps managers better monitor customers’ needs and respond to changes in those needs Chain of command: less important today, but managers still need to consider its implications when deciding how best to structure their organization o Three concepts of chain of command: authority, responsibility, and unit of command o An organization’s managers are given a certain degree to do their job of coordinating and overseeing the work of other people (authority); as managers assign work to employees, those employees assume an obligation to perform any assigned duties (responsibility) o Unity of command: preserves the concept of a continuous line of authority; without it, conflicting demands and priorities from multiple bosses can create problems Span of control: to a large degree, it determines the number of levels and managers an organization has o All things being equal, the wider or larger the span, the more efficient the organization (mostly in terms of cost) o Influenced by the skills and abilities of the manager and the employees and
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This note was uploaded on 09/08/2011 for the course MAN 3025 taught by Professor Clevenger during the Fall '08 term at University of Central Florida.

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Chapter 10 - Chapter 10 Organizing: the process through...

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