ORGANIZATIONAL STRUCTURE
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met.

ORGANIZATIONAL DESIGN
A process involving decisions about six key elements:

WORK SPECIALIZATION
The process of focusing one's occupational concentration on a specific area of expertise. An increase in job specialization among employees can make them less flexible since it tends to reduce their ability to perform other types of work within the business that fall outside their particular specialty.

DEPARTMENTALIZATION
The process of forming employees into groups to accomplish specific organizational goals.
TYPES OF DEPARTMENTALIZATION * FUNCTIONAL - Functional departmentalization in a restaurant could operate by separation of sales and marketing versus operations. Operations in the restaurant context apply to the preparation of food, while sales would apply to the serving of customers. (In this scenario, management may have difficulty deciding where to include staff that makes and serves drinks at the restaurant’s bar, because they are involved in both activities.) * Functional Departmentalization. An organization can be organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department. Functional departmentalization may be advantageous as it can increase efficiency and expertise because all related activities are performed in one place by one group of people that specialize in that activity * Product Departmentalization. An organization can also divide itself by its product lines. It creates a department for each product and that department controls all activities related to