Topic 3: ORGANIZING Flashcards
It is the establishment of authority relationships with provisions for coordination between them, both vertically and horizontally in the enterprise structure
Organizing
6 key elements of organizational design
○ Departmentalization
○ Work specialization
○ Chain of command
○ Span of control
○ Centralization and Decentralizaiton
○ Formalization
The first step in the organzing process
Departmentalization
All related activities, focus on one major activity, take advantage of specialization
Functional Departmentalization
All activities in the development, production, and marketing of one product
Product Departmentalization
Specific catchment areas, foster efficient movement of personnel to client locations.
Geographical Departmentalization
Groups jobs on the basis of product or customer flow
Process Departmentalization
Groups jobs based on a common set of needs or problems of specific customers
Customer Departmentalization
Degree to which tasks in an organization are divided into separate jobs.
Work specialization
Individual employees specialized in doing a part of the activity rather than doing the entire activity
Division of Labor
The line of authority extends from upper organizational levels to lower levels.
Chain of Command
he power and right. Formal and legitimal tride of the manager to make the decision, issue the orders, and allocate resources to achieve organizational desired outcome.
Authority
he power and right. Formal and legitimal tride of the manager to make the decision, issue the orders, and allocate resources to achieve organizational desired outcome.
Authority
Obligation that’s expected to perform assigned duties.
Responsibility
Report to only one manager
Unity of Command
The number of employees a manager can efficiently and effectively manage.
Span of Control
Degree to which decision making takes place at upper levels of the organization.
Centralization
The more that lower-level employees provide input or actually make decisions.
Decentralization
How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.
Formalization
If the formalization is HIGH, employees have ______ discretion over how they to their work.
LESS
The work is divided into units and departments
Specialization
Putting the right men on the right job.
Well-defined jobs
It helps clarifying the roles and position to every manager
Clarifies authority
Creates clear relationships among position and ensures mutual cooperation among individuals
Coordination