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What type of companies are likely to use a departmentalization structure by product?
What is a disadvantage of departmentalization by location?
What type of companies are likely to use a departmentalization structure by customer?
What is a characteristic of departmentalization by product?
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What is an advantage of departmentalization by location?
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What is a characteristic of multibase departmentalization?
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What is an advantage of departmentalization by customer?
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What is a disadvantage of departmentalization by product?
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What is an advantage of departmentalization by product?
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What type of companies are likely to use multibase departmentalization?
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Study Notes
Delegation and Decentralization
- Delegation of authority: assigning part of a manager's work and power to other workers
- Reasons for delegation:
- No manager can do everything
- Develops the skills of subordinates
- Leadership grooming
- Barriers to delegation:
- Fear the work will not get done
- Fear the work will be done too well and attract all attention of top management
- Disorganization and inability to plan and assign work effectively
Organizational Structure
- Basic forms of organizational structure:
- Line Structure
- Line-and-Staff Structure
- Matrix Structure
- Network Structure
- Line Structure:
- Simplest and oldest form
- Direct chain of command throughout the organization
- Line managers make decisions and give orders to workers
- Quick decisions with direct accountability
- Popular in small organizations
Organizational Characteristics
- Job Specialization alternatives:
- Job rotation
- Job enlargement (more duties and responsibilities)
- Job enrichment (more control)
- Departmentalization:
- Process of grouping jobs into manageable units
- Common bases of departmentalization:
- By function
- By product
- By location
- By customer
- Departments by:
- Function
- Advantage: Simplified supervision
- Disadvantage: Slow decision making
- Product
- Advantage: Easy decision making
- Disadvantage: Emphasis on product rather than organization
- Location
- Advantage: Organization can respond to unique regional needs
- Disadvantage: Large administrative staff is necessary
- Customer
- Advantage: Deal efficiently with unique customer groups
- Disadvantage: Large administrative staff is necessary
- Function
- Multibase Departmentalization:
- Most firms use more than one basis for departmentalization to improve efficiency and avoid overlapping positions
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Description
This quiz covers the principles of delegation, decentralization, and centralization in management. It includes the concept of delegating authority, benefits of delegation, and barriers to delegation.
