When management structures the organization, it clarifies who gets to make decisions, how many people report to one manager, and how many different departments the company needs in order to operate effectively.

Question

Quizplus · Accepted Answer

Structuring the organization involves deciding on a centralization versus decentralization decision-making policy; it involves decisions with regard to span of control, meaning how many employees will report to one manager; and it involves how to departmentalize.

When Management Structures the Organization, It Clarifies Who Gets to Make