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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 high degree of specialization Joe is seeing is a function of the company's:
Net Income
The income a company retains following the subtraction of all costs and taxes from its total revenue.
Income Statement
A financial statement that shows a company’s revenues and expenses over a specific period, ending with net income or loss.
Adjusted Trial Balance
A list of all accounts and their balances after adjustments are made, used to verify the balance of debits and credits.
Net Income
The total profit of a company after all revenues and gains are added to the account and all expenses and losses are subtracted.
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