Adapting Organizations to Today's Markets

Companies can reduce their production costs if they can purchase raw material in bulk; the average cost of goods goes down as productin levels increase

Each worker is to report to one, and only one, boss.

An organization with many layers of managers who set rules and regulations and oversee all decisions

The top level of management makes the decision

The lower-level managers make the decisions

The optinum number of subordinates a manager supervises or should supervise

An organizational structure in which the pyramid organization chart would be quite tall because of the various levels of management

An organization structure that has few layers of management and a broad span of control

Making comparisons to bigger companies

Redesigning an organization

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

The line of authority that moves from the top of a hierarchy to the lowest level.

Those functions that the organization can do as well as or better than any other organization in the world.

Groups of employees from different departments who work together on a long-term basis.

The dividing of organizational functions into separate units.