CHAPTER 12-15: Foundation of Company Structure

 Essay about CHAPTER 12-15: Foundation of Company Structure

п»їCHAPTER 15:

FIRST STEP TOWARD ORGANIZATION FRAMEWORK

What Is Company Structure?

Organizational Composition

Specifies how work tasks will be formally divided, grouped, and coordinated. There are six key elements that managers need to talk about when they style their org. 's framework.

Key Elements:

1 . Operate specialization

2 . Departmentalization

a few. Chain of command

4. Period of control

your five. Centralization and decentralization

6. Formalization

Job Specialization

Their education to which responsibilities in the firm are subdivided into separate jobs.

Trademark labor:

Makes useful use of employee skills

Increases employee skills through repetition

Less between-job downtime boosts productivity

Specialized training is more effective.

Allows use of particular equipment.

Benefits contain:

Increasing levels of skill

Less time is lost moving coming from job to job

Training is much less costly

Increased focus

Adam Smith's pin number factory

" Men are much very likely to discover less difficult and readier methods of getting any thing, when the complete attention with their minds is directed to that solitary object, than when it is dissipated among a great variety of items. ”

During the initial half of the twentieth century, managers viewed function specialization since an non stop source of improved productivity, and, for a time, it was. However , by simply 1960, it has become evident a good thing could possibly be carried beyond the boundary. The point reached in some jobs where " human diseconomies” from operate overspecialization come - monotony, fatigue, pressure, poor quality, elevated absenteeism, and higher yield – more than offset the economic positive aspects.

Departmentalization

The basis by which careers are grouped together

Grouping Activities Simply by:

•Function •Product •Geography •Process •Customer

Sequence of Order

The continuous line of power that expands from upper levels of a company to the lowest levels of the business and...