Chapter 8

Figuring Out Organizational Structure 1. Make strategic plans for the company 2. Decide what work needs to be done 3. Divide up the tasks 1. Job specialization – Adam Smith 4. Hire more workers as the business grows. What are the problems inherent in this?

Figuring Out Organizational Structure  Departments Set up to handle similar tasks  What are the functions of the organization?  Assigning responsibility

The Organizational Chart  A blueprint for how things get done in a company Microsoft’s organizational chart A standard organizational chart  Shows tasks, responsibilities, and hierarchy.

On Board – Different Organizational Structures

Why Are Today’s Organizations So Big??  Mass production  Economies of scale  Organizational Theory Henri Fayol ( ), functions of mgrs ○ One boss, hierarchy, organization is most important, order, pride, clear communication Max Weber ( ), sociologist ○ Manager should have the power, job descriptions, everything in writing