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Key Elements of Organizational Structure

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Work Specialization
 
- the degree to which tasks in the organization are subdivided into separate jobs
 
  • the entire job is broken down into steps, each step completed by a separate individual
  • individual workers specialize in doing part of an activity
  • involves repetitive performance of a few skills
  • can be viewed as a means to make the most efficient use of employee's skills
  • some tasks require highly developed skills
  • others can be performed by the untrained

Division of labor:

  • makes efficient use of employees skills
  • increases employee's skills through repetition
  • less between-job downtime increases productivity
  • specialized training is more efficient
  • allows the use of specialized equipment
 
Departmentalization
 
- the basis by which jobs are grouped together
 
Activities are grouped by:
  • functions performed
  • type of product
  • basis of geography or territory
  • particular type of customer

 

Chain of Command

- the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

authority - refers to the right inherent in a managerial position to give orders and expect the orders to be obeyed

unity of command - states that a subordinate should only have one superior to whom he or she is directly responsible

 

 

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