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Organizing the Business

Chapter 8. Organizing the Business. Figuring Out Organizational Structure. Make strategic plans for the company Decide what work needs to be done Divide up the tasks Job specialization – Adam Smith Hire more workers as the business grows. What are the problems inherent in this?.

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Organizing the Business

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  1. Chapter 8 Organizing the Business

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

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

  4. 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.

  5. On Board – Different Organizational Structures

  6. Why Are Today’s Organizations So Big?? • Mass production • Economies of scale • Organizational Theory • Henri Fayol (1841-1925), functions of mgrs • One boss, hierarchy, organization is most important, order, pride, clear communication • Max Weber (1864-1920), sociologist • Manager should have the power, job descriptions, everything in writing

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