M:MANAGEMENT
M:MANAGEMENT
6th Edition
ISBN: 9781260062885
Author: BATEMAN
Publisher: RENT MCG
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Chapter 7, Problem 1LO
Summary Introduction

To discuss: The fundamental characteristics of organizational structure.

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Explanation of Solution

The fundamental characteristics of an organizational structure are the following:

  • Span of control: The span of control is considered as the maximum number of employees a supervisor can control efficiently and effectively.
  • Centralization: The centralization means the decision making authority is vested in the hands of top management or higher levels of management only.
  • Decentralization: The decentralization is a process of disbursement of authority in the lower levels of management.
  • Departmentalization: The departmentalization is consider as grouping of individual in to several departments based on the work performed by them.

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