Work specialization The degree to which tasks are subdivided Into separate jobs Efficient use of employee skills Increases employee skills through repetition Less downtime between jobs Allows use of specialized equipment
Work Specialization • The degree to which tasks are subdivided into separate jobs – Efficient use of employee skills – Increases employee skills through repetition – Less downtime between jobs – Allows use of specialized equipment
Departmentalization The basis by which jobs are grouped together Function Product Geography Process Customer
Departmentalization • The basis by which jobs are grouped together – Function – Product – Geography – Process – Customer
Chain and Unity of Command The chain of command is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom The unity of command states that subordinate should have only one superior to whom he or she is directly responsible
Chain and Unity of Command • The chain of command is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom • The unity of command states that subordinate should have only one superior to whom he or she is directly responsible
Span of control The number of subordinates a manager can efficiently and effectively direct Narrow span of control Additional layers of management Increased complexity of vertical communication Tight supervision Discouragement of employee autonomy
Span of Control • The number of subordinates a manager can efficiently and effectively direct • Narrow span of control – Additional layers of management – Increased complexity of vertical communication – Tight supervision – Discouragement of employee autonomy
Centralization The degree to which decision making is concentrated at a single point in the organization
Centralization • The degree to which decision making is concentrated at a single point in the organization