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Test bank For Management Organizational Structure
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Test bank For Management Organizational Structure
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Test bank Management OrganizationalStructure
Departmentalization - ANSextent that employees with similar jobs are grouped together
Types of Departmentalization - ANS1. Functional
2. Product
3. Geographical
4. Process
5. Customer
Functional - ANSgrouping jobs by functions performed (accounting, sales)
Product - ANSgrouping jobs by product line
Geographical - ANSgrouping jobs on the basis of territory or geography
Process - ANSgrouping jobs on the basis of product or customer flow
Customer - ANSgrouping jobs by type of customer and needs
Centralization - ANSthe degree to which decision making is concentrated at upper levels in the
organization
How would you know the difference between centralized and decentralized? - ANS- In a
centralized organization, top managers make all the decisions and lower-level employees
simply carry out those orders
- In a decentralized organization, decision making is pushed down to the managers and
employees who are closest to the action
Which is better for centralization? - ANS- Depends on the situation
- Decentralization helps organizations adapt to complex environments and empowers
employees, both of which are important today
Formalization - ANSthe degree to which jobs within the organization are standardized and the
extent to which employee behavior is guided by rules and procedures
How would you know? - ANS- In a highly formalized organization, there are many organizational
rules and defined procedures (evidence may be found in employee handbooks or job
descriptions that highlight rules)
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