Page 3 - Lesson Note 2

enterprise needs a change in the organization structure whenever it

expands and grows in complexity

Also, an efficient organizational structure facilitates smooth business
operations. Lastly, it also facilitates coordination and regulation of

responsibilities within the enterprise. Consequently, this enables the
enterprise to function as an integrated unit.

Considerations to be kept in mind while building an organizational
structure:

The following considerations should be kept in mind while building an
organization structure

Job design:
 Manager has to first design the jobs

 Then specify which task is to be included in each job
 Then decide which person will do which job

Departmentalization: Once the jobs are defined they must be grouped
together to form a department as coordination becomes easier if
similar jobs are under one department and one manager.

Span of Control: After the departments are formed, how many people
and jobs the manager will manage is the next decision. The manager is