While Preparing for a Final Examination in Organizational Behaviour, You

question 89

Essay

While preparing for a final examination in organizational behaviour, you and a student in another class review the important information regarding organizational structure and design. During the conversation, the other student suggests that just about everything you need to know about organizational structure can be based on knowing the different types of departmentalization. In other words, all of the key features of organizational structure, including a structure's fundamental requirements and elements, are found in descriptions of functional structure, divisionalized structure, and other forms of departmentalization. Discuss the accuracy of this statement.

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Definitions:

EPS Growth Rate

The annual rate of growth of a company's earnings per share (EPS), indicating how the company's profitability is increasing over time.

NPVGO

Net Present Value of Growth Opportunities; an estimate of the value that future investments are expected to generate.

Cash Dividends

Payments made in cash to shareholders, typically derived from a corporation's earnings, as a way of distributing profits back to shareholders.

Fair Price

Generally refers to a valuation that accurately reflects an asset's current worth, considering all relevant factors such as market conditions and future earnings potential.