Organising Test - 71

Departmentalization helps group similar activities and functions together, making it easier to coordinate efforts and communicate within the organization.

Narrow span of management means a single manager or supervisor oversees few subordinates. This give a rise to a tall organisational structure.

There may be some conflict in distributing funds to different departments.

'Informal organization' is not an element of delegation.

Elements of delegation are:

• Responsibility
• Authority
• Accountability

Liquidation as an Exit Strategy: Liquidation entails the closing of a business through the sale of all its assets. The strategy is often used when a business cannot be sold through any of the other methods, usually due to dependence on a specific employee/owner of the company or overall poor strategy/performance.

The steps are:

• Division of work
• Grouping the jobs and departmentalisation
• Assignment of duties
• Establishing reporting relationship

Determining the number of people who are accountable to a single manager refers to Span of control.

Span of control (or span of management) is the number of subordinates who report directly to a manager or leader. The more employees assigned to a manager, the wider their span of control.

Responsibility means the obligation of subordinates to perform the duties properly. Subordinates are bound to perform these duties.

The steps to organize the process, are:

• Identification and division of work
• Grouping the jobs and departmentalisation
• Assignment of duties
• Establishing a reporting relationship

Mayo concluded that people's work performance is dependent on both social relationships and job content. He suggested a tension between workers' "logic of sentiment" and managers' "logic of cost and efficiency" which could lead to conflict within organizations.