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:

Tax-shield Approach

A method to reduce taxable income through allowable deductions such as interest expenses, resulting in lower taxes.

Operating Cash Flow

The cash generated from the normal operations of a business, reflecting how well it generates cash to fund its operating expenses and working capital.

Noncash Deductions

Expenses that can reduce taxable income but don't involve an actual outlay of cash during the deducting period, such as depreciation.

Depreciation

Allocation of the cost of a tangible asset over its useful life, representing the decrease in the value of an asset due to use and age.