Though New Managers May Be More Familiar with Traditional Approaches

question 31

Essay

Though new managers may be more familiar with traditional approaches to departmentalization, realistically, they will have to understand and learn to work within a variety of organizational structures. Write a short essay that compares and contrasts the advantages and disadvantages of two traditional approaches-the functional approach, and the divisional approach-to departmentalization. In most instances, which do you think would be the preferred approach, and why?

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Definitions:

Diminishing Marginal Utility

The principle that says the additional satisfaction a consumer gains from consuming one more unit of a good or service will lessen with each additional unit consumed.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Marginal Utility

This term refers to the additional satisfaction or utility gained by consuming one more unit of a good or service.

Rational Consumer

An economic theory assumption that consumers make purchasing decisions based on their rational outlook, available information, and self-interest to maximize utility.