- increase employee skills
- training to be more efficient
- Job is broken down into steps
Departmentalisation
- grouping job together normally as per function: Business Function (Finance, marketing, HR and Production)
- more efficiency
- types of product (Geography & Territory, Per customer)
Chain Of Command
- people with most authority give command to low
- extends from high to low
Span Of Control
- structure of a business
- easier to control for a wider span
- the wider it is the better it is because it is more organise
Centralisation & Decentralisation
- Centralisation - Decision made by top authority
- Decentralisation - Decision made by top authority and also employees
- Decentralisation are used by most company to reduce mistakes
Formalization
- rules and regulations
- Jobs within the organization are standardized
Source from: http://www.emaytrix.com/mgmt307/section2.php
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