CLEP Principles of Management 1

For example two secretaries in different departments

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emails, or reports. For example two secretaries in different departments exchange emails about a project or co-workers exchanging information, even in different departments . Downward occurs when superiors communicate with employees. 84. 85. Organizational Structure
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An organization's shape depends on the number of levels of management. If one has many levels of supervision and narrow spans of control, it is a tall organizational structure. A flat structure would have few levels of management and broad spans of control. a.i. Tall versus flat structure Tall - A management structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels. Tight control. Reduced communication overhead . Flat - A management structure characterized by a wide span of control and relatively few hierarchical levels. Loose control. Facilitates delegation. Centralization involves an organizational structure in which the authority and responsibility to make the most important decisions are at the top of the organization. One of Henri Fayol's 14 principles of classical management states centralization as a rule. Decentralization involves an organizational structure in which the authority and responsibility to make decisions is not all kept in a central headquarters, but in lower levels out in the field. The simplest organizational structure is the line organization . Many small companies operate as a pure line organization. This results in a clear chain of command and a simple organization chart. Departmentalization is the basis on which individuals are grouped into departments and departments into total organizations: 1. Functional - common skills & work tasks (the most common) 2. Divisional - common product, program or geographical location 3. Matrix - combination of Functional and Divisional 4. Team - to accomplish specific tasks 5. Network - departments are independent providing functions for a central core breaker 86. Bases of departmentation are the two main ways in which groups are split up into departments. They include "internal bases" which departmentalize within a company by function or product, and "external bases" which involve departments divided based on geography (location) and customers. The most common form of departmentation is functional departmentation. Where positions are grouped based on a common organizational purpose or function. For example engineering, accounting, HR Process departmentation involves grouping positions according to the different steps in a process. For example, a manufacturing plant may be divided into drilling, grinding, welding, assembling and finishing departments. Product Departmentation is where positions which support or are directly related to a product or product category are grouped together For example, General Motors has Chevrolet, Pontiac, and other divisions for the different brands of cars it produces.
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