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Work specialization
Departmentalization
Chain of command
Span of control
Centralization and Decentralization
Formalization
Work specialization
Work specialization refers to Division of Work.
Work Specialization is the degree to which organizational activities are
subdivided into separate jobs (Individual specializes in doing part of an
activity rather than the entire job).
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II.
Departmentalization
Departmentalization is defined as how the jobs are grouped together and
common tasks can be coordinated.
When jobs are grouped, departments are formed.
The jobs can be grouped and organized in the following categories:
i.
ii.
iii.
iv.
v.
Function
Product
Geography
Process
Customer
III.
Chain of command
Chain of command is an unbroken line of authority that extends from Top
to Lowest level and clarifies who reports to whom.
To understand the chain of command, it is necessary to understand three
other following important concepts:
a) Authority
b) Responsibility
c) Unity of Command
a) Authority
Authority is the rights inherent (inbuilt) in a managerial position to tell
people what to do and to expect them to do it.
b) Responsibility
Responsibility is the obligation or expectation to perform.
c) Unity of Command
Unity of command is the concept that a person should have one boss and
should report only to that person.
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IV.
Span of control
Span of control is defined as the number of subordinates that a manager
can effectively and efficiently directs towards organizational goals.
Wider spans are more efficient in terms of cost because fewer managers
needed but they can reduce the efficiency and performance of the
employee.
Narrow spans can allow manager to maintain the control over the
employees but they are expensive, make vertical communication in the
organization and are more complex.
V.
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Formalization.
Formalization is the degree to which jobs within the organization are
standardized.
When there is high formalization, workers have very little control over their
work and they have to follow rules and procedures.
When there is low formalization, workers have more control over their
work.
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