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Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
-Refer to Table 15.1. The numerous layers of employees between the service providers and top management represents the company's:
Diseconomies Of Scale
Diseconomies of Scale arise when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased production costs.
Utilization
The ratio of the actual output of a facility to its potential output under full capacity, usually expressed as a percentage.
Efficiency
Actual output as a percent of effective capacity.
Effective Capacity
The maximum output level that an organization can sustain under normal conditions, considering the limitations of time, resources, and constraints.
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