The Idea That an Organization's Hierarchy Should Be Designed with as Few

question 34

Multiple Choice

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

• A) Span of control
• B) Centralization
• C) Minimum chain of command
• D) The unity of command
• E) Decentralization

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Definitions:

Valve Division

A business segment or department within a larger company that specializes in the production, distribution, and sale of valves.

Customer Service Department

A division within a company that handles customer inquiries, complaints, and provides support and assistance.

Variable Costs

Money spent that varies depending on the quantity of items made or sold, including the expenses for materials and manpower.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold during a specific timeframe, including rent, wages, and insurance premiums.