scripts - 6 key elements of Cathay's organization...

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6 key elements of Cathay’s organization structure. Figure 1: Cathay’s organizational chart 1. Departmentalization and work specialization Figure 1 is the organization chart of the company. After being divided into different divisions such as management, IT, planning, marketing, and training and so on, tasks are subdivided to many smaller departments. For example, the division of policy administration has 5 departments: underwriting, premium, point of sales, claim and customer service. The IT division has 3 departments: system development, system support and information security. Because jobs are grouped in such a way, the organization is departmentalized by functions. The advantage of this type of departmentalization is obtaining efficiencies from putting like specialists together. Functional departmentalization seeks to achieve economies of scale by placing people with common skills and orientations into common units. Because tasks and jobs are divided into quite specific groups, the company’s work specialization is quite high.
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2. The chain of command Chain of command is the unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. This Cathay organization has two reporting lines, one is administration reporting line and another is technical reporting line. According to administration reporting line, each subordinate report to only one superior, which means the company preserves a unity of command. The unity of command means that a subordinate should have only one superior to whom he or she is directly responsible. The unity of command will help the company’s employees to avoid conflicting demands or priorities from several superiors. However, because the jobs
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scripts - 6 key elements of Cathay's organization...

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