CHAPTER 12-15: Foundation of Company Structure
FIRST STEP TOWARD ORGANIZATION FRAMEWORK
What Is Company Structure?
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.
1 . Operate specialization
2 . Departmentalization
a few. Chain of command
4. Period of control
your five. Centralization and decentralization
Their education to which responsibilities in the firm are subdivided into separate jobs.
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.
Increasing levels of skill
Less time is lost moving coming from job to job
Training is much less costly
пѓAdam 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. вЂќ
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 diseconomiesвЂќ from operate overspecialization come - monotony, fatigue, pressure, poor quality, elevated absenteeism, and higher yield вЂ“ more than offset the economic positive aspects.
The basis by which careers are grouped together
Grouping Activities Simply by:
вЂўFunction вЂўProduct вЂўGeography вЂўProcess вЂўCustomer
Sequence of Order
The continuous line of power that expands from upper levels of a company to the lowest levels of the business and...