PMG1123 --- Ch.04 Organizational Structure & Design

Organizational structure is the formal arrangement of jobs within organization.

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Organizing involves the process of dividing jobs that are suitable with organizational goals and directions.

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There are seven elements in organizational design.

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Work specialization refers to the entire jobs being broken down into steps and each steps is completed by a different persons.

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Functional departmentalization refers as grouping jobs on the basis of territory or geography.

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THREE (3) important concepts in chain of command are, authority, responsibility and overspecialization.

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When decisions tend to be made at lower levels in an organization, the organization is said to be centralization.

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In matrix structure, employees have two bosses.

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The divisional structure is an organizational structure made up of separate business units or divisions.

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The number of employees a manager can efficiently and effectively supervise refer to span of control.

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