A Fundamental Characteristic of Organization Structure Is Departmentalization, Which Is

question 118

Essay

A fundamental characteristic of organization structure is departmentalization, which is the basis for grouping positions into departments and departments into the total organization. Managers make choices about how to use the chain of command to group people together to perform their work. Write a short essay that describes and compares and contrasts the advantages and disadvantages of two 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:

Utilization

Refers to the extent to which a system, resource, or workforce is used to achieve its maximum potential output or capacity.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred; a critical measure of financial viability for a product or business.

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.