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Chapter 15 (What is organizational structure, Common Organizational Designs, Why do Structures Differ?
oOne popular way to group activities is by functions performed. Businesses also departmentalize jobs by the type of product or service the organization produces. A firm can also departmentalize on the basis of geography, or territory. A final category of departmentalization uses the particular type of customer the organization seeks to reach. Grouping jobs by skills required is not a primary way of grouping jobs.•The right inherent in a managerial position to give orders and expect orders to be obeyed is termed authority•The principle of unity of commandhelps preserve the concept of an unbroken line of authority.•Span of control is a key element of an organization's structure: How many individuals can a manager efficiently and effectively direct?•A wider span of control brings the organization closer to customers •A wider span of control is consistent with recent efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees. •A narrow span of control is expensive because it adds levels of management•Centralization refers to the degree to which decision making is concentrated at a single point in the organization. o