Study GuidePrinciples of Management–Creating OrganizationalStructure1. Concepts of OrganizingOrganizing is all about how people and tasks are structured in an organization. How individuals andgroups relate to one another—both vertically (who reports to whom) and horizontally (howdepartments interact)—affects how work gets done. To organize effectively, managers rely on severalkey concepts:work specialization, chain of command, authority, delegation, span of control,andcentralization versus decentralization. Many of these ideas come from the managementprinciples developed by Henri Fayol.1.1Work SpecializationWork specialization (or division of labor) is the idea that people can work more efficiently when theyfocus on a specific task. Instead of doing many different jobs, employees concentrate on the tasksrelated to their role.•High specialization:Employees focus on a single task, like running one machine in afactory. This makes them very efficient at that task.•Low specialization:Employees do many different tasks, such as assembling an entireproduct. This can be less efficient.The downside:Too much specialization can make work boring and isolating. If a specializedemployee leaves, the organization loses their expertise.Modern approach:Many organizations now expand jobs to include more variety or create teamswhere employees rotate tasks. This increases engagement and flexibility.1.2Chain of CommandThe chain of command is the line of authority in an organization. It tells everyone who reports towhom.Unity of Command•Each employee should haveonly one direct supervisor.Preview Mode
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