Modern Management, 13e (Certo/Certo)
Chapter 10 Fundamentals of Organizing
1) Organizing is the process of establishing orderly uses for all resources within the management
system.
Answer: TRU
!) "enri #ayol recommends that businesses a$oid red tape% regulations% and paperwor& when
organizing resources.
Answer: TRU
') "enri #ayol recommends that businesses establish multiple guiding authorities when
organizing resources.
Answer: #A(
*) The final step in the organization process is to allocate resources and directi$es for subtas&s.
Answer: #A(
+) ,ureaucracy can be characterized as a management system with detailed procedures% rules%
and a clearly outlined organizational hierarchy with impersonal relationships among organization
o rganization
members.
Answer: TRU
-) t is recognized today that the bureaucratic approach without an app
appropriate
ropriate emphasis on the
human $ariable is almost certainly a formula for organizational failure.
Answer: TRU
/) According to 0ary ar&er #ollett% coordination can be attained with the least difficulty
through direct horizontal relationships and personal communications.
Answer: TRU
2) Traditionally%
Traditionally% indi$iduals at the top of a pyramid3shaped organizational structure ha$e more
authority
less responsibility than indi$iduals at the bottom of the pyramid.
Answer: but
#A(
4) The formal structure of an organization e$ol$es naturally and tends to be molded by indi$idual
norms and $alues and social relationships.
Answer: #A(
15) A company6s informal organizational structure is represented primarily by the organizational
chart.
Answer: TRU
11) 7ert
7ertical
ical dimensioning is directly related to the concept of the scalar relationship 8 that is%
the chain of command.
Answer: TRU
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1!) pan of management refers to the number of organizational le$els below that of a particular
manager.
Answer: #A(
1') n general% the closer the subordinates
subo rdinates are% physically%
physically% the more of them managers can
super$ise effecti$ely.
effecti$ely.
Answer: TRU
1*) 7. A. ;raicunas de$eloped a formula for determining the number of actual relationships
between a manager and subordinates when the number of subordinates is &nown.
Answer: #A(
1+) <ormally%
<ormally% the greater the height of the organization chart% the smaller the span of
management.
Answer: TRU
1-) The most widely used basis for establishing departments within the formal structure is by
type of product.
Answer: #A(
1/) =ithin
=ithin a matri> structure% wor&ers are responsible for their original acti$ities along with
pro?ect acti$ities.
Answer: TRU
12) The matri> structure is contradictory to the principle of unity of command.
Answer: TRU
14) #our primary forces influence the e$olution of formal organizational structure: forces in the
manager% forces in the tas&% forces in the en$ironment% and forces in the subordinates.
Answer: TRU
!5) #ayol has indicated that strict adherence to a particular chain of command is always
ad$isable
when see&ing information.
Answer: #A(
!1) @@@@@@@@ is the process of establishing orderly uses for resources within the management
system.
A) Organizing
,) 9ommunication
9) lanning
) 9ontrolling
) 0oti$ation
Answer: A
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!!) @@@@@@@@ s&ill is the ability to establish orderly uses for resources within the management
system.
A) Organizing
,) 9ommunication
9) lanning
) 9ontrolling
) 0ar&eting
Answer: A
!') According to #ayol6s guidelines for organizing resources% you should a$oid @@@@@@@@.
A) formulating precise decisions
,) using sanctions against faults and errors
9) instituting and effecting controls
) regulations% redtape% and paperwor&
) defining duties
Answer: 
!*) According to #ayol6s guidelines for organizing resources% you should do all of the following%
B9T @@@@@@@@.
A) establish multiple guiding authorities
,) define duties
9) use sanctions against faults and errors
) encourage initiati$e and responsibility
) offer suitable rewards for ser$ices rendered
Answer: A
!+) According to #ayol6s guidelines for organizing resources% you should @@@@@@@@.
A) establish multiple guiding authorities
,) ma&e e>tensi$e use of regulations and paperwor&
9) not use sanctions against faults and errors
) recognize the unity of command
) not lin& rewards to performance
Answer: 
!-) =hich of the following is the first step in the organizing processC
A) establish ma?or tas&s
,) reflect on plans and ob?ecti$es
9) allocate resources and directi$es for subtas&s
) e$aluate results of organizing strategy
) di$ide ma?or tas&s into subtas&s
Answer: ,
!/) The second and third steps of the organizing process focus on the @@@@@@@@.
A) results of the organizing strategy
,) organizational plans
9) organizational goals and ob?ecti$es
) tas&s to be performed within the management system
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) allocation of resources and directi$es
Answer: 
!2) =hich of the following is the last step in the organizing processC
A) Allocate resources and directi$es for subtas&s.
,) $aluate results of organizing strategy.
strategy.
9) stablish ma?or tas&s.
) Reflect on plans and ob?ecti$es.
) i$ide ma?or tas&s into subtas&s.
Answer: ,
!4) The bureaucracy model of organizing was proposed by @@@@@@@@.
A) 7. A. ;raicunas
,) "enri #ayol
9) Albert instein
) 0ary ar&er #ollett
) 0a> =eber
Answer: 
'5) =hich of the following is one of the three main components of the management system that
=eber
=e
ber termed a bureaucracyC
A) minimum regulations and paperwor&
,) close% personal relations among organization members
9) emphasis on the human $ariable
) detailed procedures and rules
) a loosely defined organizational hierarchy
Answer: 
'1) =hich of the following is the main criticism of =eber6s
=eber6s bureaucracy modelC
A) t fails to emphasize setting detailed procedures and rules.
,) t gi$es short shrift to the human $ariable within organizations.
9) t does not emphasize a clearly defined organizational structure.
) t o$eremphasizes positi$e relationships among organization members.
) t attempts to eliminate paperwor& and regulations.
Answer: ,
'!) @@@@@@@@ is the assignment of $arious portions of a particular tas& among a number of
organization members.
A) articipation
,) Dob enlargement
9) i$ision of labor
) Dob rotation
) =or& sharing
Answer: 9
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'') Alistair
Alistair #ashions% a clothing manufacturer% uses an assembly3line to manufacture clothes
whereby different groups of wor&ers specialize in particular tas&s 8 cutting fabric% finishing
slee$es% ma&ing collars% fi>ing zippers% sewing buttons% etc. dentify the organizing
o rganizing system being
used here.
A) ?ob rotation
,) ?ob enlargement
9) participati$e management
) di$ision of labor
) ?ob enrichment
Answer: 
'*) =hich of the following is an ad$antage of di$ision of laborC
A) t emphasizes the human $ariable in organizations.
,) t results in high le$els of employee moti$ation.
9) t results in specialization and higher s&ill le$els.
) t ma&es wor& more interesting.
) t broadens the scope of wor&.
wo r&.
Answer: 9
'+) =hich of the following is a disad$antage of di$ision of laborC
A) t ma&es the wor& more difficult.
,) t ma&es wor& more time3consuming and inefficient.
9) t can result in wor&ers getting bored of their wor&.
wo r&.
) t pre$ents wor&ers from specializing at a tas&.
) t reEuires wor&ers to &now about the entire
en tire process and not ?ust one tas&.
Answer: 9
'-) @@@@@@@@ is defined as the orderly arrangement of group effort to pro$ide unity of action in
the pursuit of a common purpose.
A) Dustification
,) 9ombination
9) Amalgamation
) 9oordination
) Rationalization
Answer: 
'/) =hich of the following is one of #ollett6s guidelines on coordinationC
A) ersonal communication should be minimized in coordination.
,) 0anagers can assume that if their system shows coordination now% it will show coordination
in the future.
9) The human element should be minimized in coordination.
) 0anagers should plan for coordination.
) 9oordination can be achie$ed with least difficulty through $ertical relationships.
Answer: 
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'2) According to #ollett% coordination can be attained with the least difficulty through @@@@@@@@.
A) a bureaucratic structure
,) a strict adherence to the chain of command
9) minimizing the human element
) direct horizontal relationships and personal communications
) discussions with people higher up the organization hierarchy
Answer: 
'4) #ormal structure is @@@@@@@@.
A) molded by indi$idual norms and $alues and social relationships
,) defined as the relationships that e$ol$e naturally among organization members
9) represented primarily by the organization chart
) usually drawn directly from an organization6s informal structure
) usually identical to an organization6s informal structure
Answer: 9
*5) nformal structure is @@@@@@@@.
A) molded by indi$idual norms and $alues and social relationships
,) defined as the relationships among organizational resources as outlined by management
9) represented primarily by the organization chart
) usually represented in a pyramid form
) usually identical to an organization6s formal structure
Answer: A
*1) Organization structure is represented primarily by means of a graphic illustration called aFn)
@@@@@@@@.
A) semantic networ&
,) e>ecuti$e dashboard
9) directed graph
) organization chart
) critical path
Answer: 
*!) Traditionally%
Traditionally% an organization chart is constructed in a @@@@@@@@ form.
A) radial tree
,) spider diagram
9) pyramid
) hyperbolic tree
) pie3diagram
Answer: 9
*') =hich of the following is true about the traditional organization chart constructed in pyramid
formC
A) (ines between bo>es designate informal lines of communication between indi$iduals.
,) Relati$e positioning of indi$iduals within bo>es on the chart
ch art indicates broad social
relationships.
9) ndi$iduals toward the top of the pyramid ha$e more authority than those toward the bottom.
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) uch organizational charts cannot communicate the comple>ity of the organization.
) ndi$iduals toward the bottom of the pyramid ha$e
ha $e more responsibility than those toward the
top.
Answer: 9
**) @@@@@@@@ is directly related to the concept of the scalar relationship 8 that is% the chain of
command.
A) 0atri> structuring
,) epartmentalizing
9) 7ertical dimensioning
) "orizontal dimensioning
) (ateralizing
Answer: 9
*+) Unity of command is the management principle that recommends that @@@@@@@@.
A) all managers share the same goals
,) all employees should accept their formal leader or leaders
9) an indi$idual ha$e only one boss
) organizational plans be consistent with organizational goals
) the organizing system be consistent with organizational plans
Answer: 9
*-) pan of management refers to the number of @@@@@@@@.
A) le$els in an organization
,) organizational le$els abo$e an indi$idual
9) organizational le$els below an indi$idual
) bosses an indi$idual has
) indi$iduals a manager super$ises
Answer: 
*/) #red is a ;rade  manager in (ighthouse nfrastructure and manages a small team of eight
engineers. The company has 1+ ;rade  managers.
managers. "e wor&ed his way up from the lowest
grade% ;rade % where he was one of +! line managers and hopes to be promoted to ;rade 9
soon% which would ma&e him one of the si> $ice3presidents in the company. "owe$er% brea&ing
into ;rade ,% comprising three presidents% will be a challenge. Only the 9O and 9OO occupy
;rade A. =hich
=hich of the following numbers represents #red6s span of managementC
A) 1+
,) -5
9) +!
) 2
) 11
Answer: 
*2) According to the contingency $iewpoint to designing span of management% the appropriate
span of management widens when @@@@@@@@.
A) the acti$ities performed by super$ised indi$iduals are similar
,) subordinates are carrying out comple> functions
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9) the manager needs to spend a lot of time on planning acti$ities
) subordinates6 acti$ities need to be synchronized carefully
) subordinates are widely physically separated
Answer: A
*4) According to the contingency $iewpoint to designing span of management% the appropriate
span of management narrows when @@@@@@@@.
A) the acti$ities performed by super$ised indi$iduals are similar
,) subordinates are carrying out simple functions
9) the manager spends little time on planning acti$ities
) subordinates6 acti$ities need to be synchronized carefully
) subordinates are physically located close to one another
Answer: 
+5) According to the contingency $iewpoint to designing span of management% which of the
following situations would warrant a relati$ely wide span of controlC
A) super$ising a team of scientists engaged in comple> research wor&
,) super$ising a team of factory wor&ers sewing buttons onto shirts
9) managing a $irtual team of engineers spread across se$eral countries
) managing a highly interdependent production team
) managing and coordinating the acti$ities of a mar&eting team
Answer: ,
+1) @@@@@@@@ de$eloped a formula for determining the number of possible relationships between
a manager and subordinates when the number of subordinates is &nown.
A) 0ary ar&er #ollett
,) "enri #ayol
9) #. =. Taylor
) 0a> =eber
) 7. A. ;raicunas
Answer: 
+!) ;raicuna
;raicunas6s
s6s formul
formulaa is as follows:
follows: 9 G nF
H n3 1). =hat
=hat does
does 9 stand
stand for
for in this formulaC
formulaC
A) the total number of departments possible in an organization
,) the appropriate number of subordinates a manager can ha$e
9) the appropriate number of le$els an organization can ha$e
) the total number of possible relationships between manager and subordinates
) the degree of the difficulty in coordinating a certain number of subordinates
Answer: 
+') ;raicuna
;raicunas6s
s6s formul
formulaa is as follows:
follows: 9 G nF
H n3 1). =hat
=hat does
does n stand
stand for in this
this formul
formulaC
aC
A) the total number of departments in an organization
,) the appropriate number of subordinates a manager can ha$e
9) the total number of le$els an organization can ha$e
) the &nown number of subordinates for a particular manager
) the appropriate number of possible relationships between manager and subordinates
Answer: 
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+*) Andrew is a mid3le$el manager with three organizational le$els abo$e him and two below
him. "e has four analysts reporting directly to him. Using ;raicunas6s formula% calculate the total
number of possible relationships between Andrew and his subordinates.
A) *
,) 19) **
) +) -*
Answer: 9
++) According to ;raicunas6s formula for determining the number of possible relationships
between a manager and subordinates% as the number of subordinates increases arithmetically%
arithmetically% the
number of possible relationships between the manager and those subordinates @@@@@@@@.
A) increases proportionately
,) decreases proportionately
9) increases geometrically
) increases arithmetically%
arithmetically% too
) decreases geometrically
Answer: 9
+-) =hich of the following is a criticism of ;raicunas6s wor& in span of managementC
manage mentC
A) "e failed to emphasize the importance of span of management on the organization.
,) "e does not recognize the principle of unity of command.
9) "e does not consider the number of actual relationships among superiors and subordinates.
) "e fails to specify what will happen if the number of subordinates increases or decreases.
) "e ta&es into account managers6 relationships outside the organization.
Answer: 9
+/) =hich of the following is true about the height of an organization chartC
A) An organization6s
organization6s structure should be built from bottom to top to ensure that appropriate spans
of management are achie$ed at all le$els.
,) pan of management usually has no influence on the height of an organization chart.
9) ncreasing spans of management to eliminate certain management positions and thereby
reducing salary e>penses will help the organization achie$e long3term success.
) <ormally%
<ormally% the greater the height of the organization chart% the smaller the span of
management.
) O$erall% managers seem to be using taller organizational
o rganizational structures now than in the past.
Answer: 
+2) The @@@@@@@@ of an organization refers to the e>tent to which firms use lateral subdi$isions
or specialties within an organization.
A) laddering
,) horizontal dimensioning
9) $ertical integration
) $ertical dimensioning
) bac&ward integration
Answer: ,
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+4) =hich of the following is the most widely used basis for departmentalizationC
A) customer
,) wor& functions
9) geography
) matri>
) product or ser$ice
Answer: ,
-5) The organization structure at Iinetic 0achines is horizontally di$ided into 0ar&eting%
#inance% roduction% and RJ departments. dentify the departmentalization mode being used
here.
A) product
,) geographic
9) functional
) customer
) matri>
Answer: 9
-1) =hich of the following is an ad$antage of functional departmentalizingC
A) t facilitates coordination between $arious functions.
,) t facilitates assigning of blame when a product
produc t performs poorly.
9) t allows firms to pool human resources for both short3term and long3term pro?ects.
) t promotes consistency in how functions are carried out.
) t facilitates differentiation of strategy across different segments.
Answer: 
-!) =hich of the following is a potential disad$antage of functional departmentalizingC
A) difficulty for employees to prioritize responsibilities
,) lac& of unity of command
9) difficulty in coordinating between $arious functions
) difficulty in assigning blame or credit for the performance of a function
) lac& of consistency in carrying out functions
Answer: 9
-') The organization structure at inclair #unds% a financial ser$ices company% is di$ided
horizontally into nsurance% 0utual #unds% and =ealth
=ealth 0anagement departments. dentify the
departmentalization mode being used here.
A) matri>
,) customer
9) product or ser$ice
) geographic
) functional
Answer: 9
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-*) =hich of the following is an ad$antage of departmentalizing by matri>C
A) t clarifies the power structure within the firm.
,) t helps employees prioritize responsibilities.
9) t facilitates coordination across pro?ects.
) t allows firms to achie$e unity of command.
) t allows firms to pool human resources for short3term and long3term pro?ects.
Answer: 
-+) ;izmo ales% a company that sells office supplies to companies in Atlant
Atlanta%
a% ;A% has
organized the business horizontally into departments named <orth Atlanta% outh Atlanta% and
owntown Atlanta.
Atlanta. This indicates that ;izmo has departmentalized on the basis of @@@@@@@@.
A) products
,) pro?ects
9) customers
) territories
) functions
Answer: 
--) i>el Technologies%
Technologies% a manufacturer of electronic products and cell phones% has di$ided the
business
into two di$isions
8 lectronics
lectronicson
Retailers
hone Retailers. This indicates that
that
i>el
Technologies
Technologies
has departmentalized
the basis
b asisand
of 9ell
@@@@@@@@.
A) geography
,) products
9) functional
) customers
) matri>
Answer: 
-/) At (andmar& 9onstructions% crucial pro?ects are handled completely by pro?ect managers
who are empowered to borrow mar&eting% sales% engineering% finance and RJ staff% and other
employees from $arious parts of the organization to complete their pro?ects. dentify the
departmentalization mode being used in this company.
A) customer
,) matri>
9) product
) geographic
) functional
Answer: ,
-2) @@@@@@@@ organizations are also called pro?ect organizations.
A) ilo
,) #unctional
9) Radial
) yramid
) 0atri>
Answer: 
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-4) =hich of the following modes of departmentalization contradicts the principle of the unity of
commandC
A) customer
,) functional
9) geographic
) matri>
) product or ser$ice
Answer: 
/5) =hich of the following is a disad$antage of departmentalizing by matri>C
A) t results in duplication of effort.
,) t can be confusing for employees.
9) t does not allow firms to maintain fle>ibility.
) t does not allow firms to pool resources for short3term pro?ects.
) t results in a bureaucratic organization.
Answer: ,
/1) =hich of the following is true about departmentalizing by matri>C
A) t ensures unity of command.
,) ro?ect managers generally report directly to the company 9O.
9) A matri>
matri> organization essentially has a bureaucratic structure.
) =hen on a pro?ect% wor&ers are not responsible for their original duties.
) This mode is usually not utilized for short3term pro?ects.
Answer: ,
/!) #our primary forces influence the e$olution of a formal structure: forces in the manager%
forces in the tas&% forces in the en$ironment% and forces in the @@@@@@@@.
A) subordinates
,) mar&et
9) shareholders
) economy
) community
Answer: A
/') n the conte>t of forces influencing formal structure% the customers and suppliers of the
management system% along with e>isting political and social structures constitute the forces in
the @@@@@@@@.
A) manager
,) tas&
9) en$ironment
) subordinates
) acti$ity
Answer: 9
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/*) #ayol indicated that strict adherence to a particular chain of command is @@@@@@@@.
A) a must
,) the first order of business
9) not always ad$isable
) always ad$isable
) ne$er ad$isable
Answer: 9
/+) iscuss the fi$e main steps in the organizing process.
Answer: The first step in the organizing
organizing process is to reflect on plans and ob?ecti$es. This is an
essential first step because planning in$ol$es determining how the organization will attain its
ob?ecti$es% and organizing in$ol$es determining how managers will use organizational resources
to acti$ate plans. The second step is to establish ma?or tas&s% or ?obs% to be done within an
organization to achie$e the ob?ecti$es established by plans. The third step is to subdi$ide the
tas&s into subtas&s% which can be thought of as the elements of doing one6s ?ob. The fourth step is
to allocate resources and directi$es for subtas&s. This essentially means the manager must now
determine who will do the tas&s and subtas&s% and the relationships between those people. The
fifth step is to e$aluate the results of the implemented organizational strategy. The manager must
gather feedbac& on how well the strategy is wor&ing.
age Ref: !!13!!'
(earning Outcome: iscuss factors influencing organizational structure
structure decisions
Ob?ecti$e: 1
ifficulty: asy
9lassification: 9onceptual
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/-) escribe what is meant by the term Kdi$ision of labor.K Also e>plain the ad$antages and
disad$antages associated with di$ision of labor.
Answer: i$ision of labor is the assignment
assignment of $arious portions of a particular tas& among a
number of organization members. i$ision of labor calls for specialization. e$eral e>planations
ha$e been offered for the usefulness of di$ision of labor. #irst% when wor&ers specialize in a
particular tas&% their s&ill at performing
performing that tas& tends to increase. econd% wor&ers who ha$e
one ?ob% and one place in which to do it% do not lose $aluable time changing tools or locations.
Third% when wor&ers concentrate on performing only one ?ob% they naturally try to ma&e the ?ob
easier and more efficient. (astly% di$ision of labor creates a situation in which wor&ers need only
to &now how to perform their part of the wor& tas&% rather than the entire process for producing
the end product. Therefore% the tas& of understanding
u nderstanding their wor& does not become too
burdensome. Arguments
Arguments ha$e also been presented against the use of an e>treme di$ision of labor.
ssentially%% these arguments contend that di$ision of labor focuses solely on efficiency and
ssentially
economic benefit and o$erloo&s the human $ariable in organizations. =o
=or&
r& that is e>tremely
specialized tends to be boring and therefore will e$entually cause production rates to go down
do wn as
wor&ers become resentful of being treated li&e machines.
age Ref: !!*
(earning Outcome: iscuss factors influencing organizational structure
structure decisions
Ob?ecti$e: *
ifficulty:
0oderate
9lassification:
9onceptual
//) efine the concepts of $ertical dimensioning% scalar relationships% and unity of command and
e>plain how they are related.
Answer: 7ertical
ertical dimensioning refers to the e>tent to which an organization uses $ertical
$ertical le$els
to separate ?ob responsibilities.
7ertical
7e
rtical dimensioning is directly related to the concept of the scalar relationship 8 that is% the
chain of command. $ery organization
o rganization is built on the premise that the indi$idual at the top
possesses the most authority and that other indi$iduals6
indi$iduals6 authority is scaled downward according
to their relati$e position on the organization chart. The lower a person6s position on the
organization chart% then the less authority that person possesses.
The scalar relationship% or chain of command% is related to the unity of command. Unity of
command
is the management
principle
that recommends
that an indi$idual
ha$e only
too many bosses
gi$e orders% the
result will
probably be confusion%
contradiction%
and one boss. f
frustration 8 a sure recipe for ineffecti$eness and inefficiency in an organization.
age Ref: !!+3!!2
(earning Outcome: iscuss factors influencing organizational structure
structure decisions
Ob?ecti$e: '
ifficulty: asy
9lassification: 9onceptual
14
9opyright  !51* earson ducation% nc.
/2) >plain the concept of span of management% and discuss the factors that influence the
appropriateness of the size of an indi$idual6s span of management.
Answer: pan of management is the number
number of indi$iduals a manager super$i
super$isesL
sesL the greater the
number of indi$iduals the greater the span of management. The central concern of span of
management is to determine how many indi$iduals a manager can
c an super$ise effecti$ely. To
To assist
in determining the appropriate span of management% "arold Ioontz de$eloped fi$e situational
factors that influence the span of management. The first factor is similarity of functions 8 the
more that subordinates are performing similar functions% the more that the appropriate span of
management widens. The ne>t factor is geographic continuity.
continuity. The closer subordinates are
physically%% the more the manager can super$ise effecti$ely.
physically
effecti$ely. 9omple>ity of functions is the ne>t
factor. The more difficult and in$ol$ed the acti$ities of
o f the subordinates are% the more difficult it
is to manage a large number of subordinates
subo rdinates effecti$ely.
effecti$ely. 9oordination as a factor deals with the
amount of time managers must spend synchronizing the acti$ities of their subordinates. The
greater amount of time spent doing so% the smaller the span of management. The final factor%
planning% suggests the more time managers spend planning% the fewer indi$iduals they can
manage effecti$ely.
effecti$ely.
age Ref: !!(earning Outcome: iscuss factors influencing organizational structure
structure decisions
Ob?ecti$e: /
ifficulty:
0oderate
9lassification:
9onceptual
/4) =hat is meant by the horizontal dimensioning of an organizationC Also e>plain the terms
KdepartmentsK and Kdepartmentalizing%K and list the $arious modes of departmentalizing an
organization.
Answer: The horizontal dimensioning of an organization refers to the e>tent to which firms
firms use
lateral subdi$isions or specialties within an organization. O$erall% to build organizations
horizontally%% organizations establish departments. A departm
horizontally
department
ent is a uniEue group of
o f resources
established by management to perform some organizational tas&. epartmentalizing is the
process of establishing departments within the
the management system.
Typically%
Ty
pically% these departments are based on% or contingent on% such situational factors as the wor&
functions being performed% the product or ser$ice being offered% the territory being co$ered% and
the
customer
being targeted.
age
Ref: !!23!'!
(earning Outcome: iscuss factors influencing organizational structure
structure decisions
Ob?ecti$e: ifficulty: asy
9lassification: 9onceptual
15
9opyright  !51* earson ducation% nc.