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TAMU MGMT 105 - Organizing the Business Part 1
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MGMT 105 1st Edition Lecture 13Outline of Last Lecture I. The Business of Managing – Business Management(continued)Outline of Current Lecture II. Organizing the BusinessCurrent Lecture- Organizational Structure: specification of the jobs to be done- Organizational Chart: how employees fit into an organization- An organizational chart always shows power – False- An executive assistant is the 2nd most powerful to a Vice President- Chain of Command: reporting relationships within a company- Specialization: determining who will do what in a company- Job Specialization: identifies with a specific job to be doneo Example: a cartoonist for Disney is an artist- Departmentalization: group jobso Product Departmentalization: dividing an organization according to specific products or services being created  Example: General Mills makes flour and cerealso Process Departmentalization: divide an organization according to production processes used to create a good or service Example: blasted pickles (wash, sweet, put in jar, put in box)o Functional Departmentalization: divind an organization according to groups’ functions or activities Example: working at Ritz Carlton hotel- housekeeping and restaurant needs to know when hotel will be at full occupancy so they can prepare ahead of time Example: Leanne is an accountant for Goldman Sachso Customer Departmentalization: department stores diving up Example: Macy’s women’s section o Geographic Departmentalization: dividing an organization into serving certain areas of the country or the world Example: Blue Bell ice cream dominant in the South- Centralized Organization: an organization in which most decision-making authority is held by theupper level management o Example: food industry at a restaurant - Tall Organizational Structure: characteristic of centralized companies with multiple layers of management o Span of Control: the number of people one can manage effectively Walmart would have a wide span of control  A surgeon would have a narrow span of control- Decentralized Organization: most deal with decision-making authority is delegate to levels of management o Example: law firm- Flat Organization Structure: trait of decentralized companies with few layers of


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