Coporate Strategy and Division

5 important questions on Coporate Strategy and Division

Explain the structure work specialization:

§ dividing work activities into separate job tasks
§ Today’s view is that work specialization can help employees be more efficient

Explain the structure chain of command:

§ Traditional view: chain of command and its companion concepts (authority, responsibility, and unity of command) were viewed as important ways of maintaining control in organizations
§ Contemporary view: they are less relevant in today’s organizations

Explain the sturucture span of control:

§ Traditional view: managers should directly supervise no more than five to six individuals
-Contemporary view: span of control depends on the skills and abilities of the manager and the employees and on the characteristics of the situation
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What does an organizational structure determine:

o Division of labor
o Authority relations
o Responsibilities
- Formal communication

Where is an organizational structure influenced by?

o Amount of (in)stability in the environment
o Diversity of the organization’s activities
o Organization’s strategy
o Life cycle phase of the organization

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