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Questions and Answers
What is the primary advantage of departments by product?
Which type of departmentalization is depicted in the Toyota Motor Corporation example?
What is the primary disadvantage of departments by customer?
What is the main characteristic of departments by product?
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What is the primary advantage of multibase departmentalization?
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Which type of departmentalization is likely to prioritize product features?
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What is the main characteristic of departments by location?
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What is the primary disadvantage of departments by product?
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Which type of departmentalization is depicted in the B2B (Wholesaler) example?
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What is the primary advantage of departments by location?
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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
Understand the concepts of delegation, decentralization, and centralization in management, including the reasons why managers delegate tasks and the barriers to delegation.
