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Define the two types of organizations

Management Dec 24, 2020

Define the two types of organizations. Identify and discuss fully the three levels of an organization.

Expert Solution

An organization can be systematized into different organizational structures that include:

  • Divisional structure organizes a firm's trading activities into geographical, products, or service groups. For instance, a company has divisions that handle sales in different geographical zones. Moreover, each division has independent departments like sales, accounting, technical, and finance.
  • Functional departmentalization congregates together professionals from different functions to form departments with their independent managers. Hierarchy is observed as managers are answerable to their superiors.

An organization has three levels of management that work hand in hand in daily operations to attain the set objectives.

  • Top-level management is the ultimate source of authority and major decision makers. It comprises of chief executive officer and the board of directors. Its roles include formulating policies, preparing strategic plans, providing guidance and directions, controlling all other departments, appointing middle-level managers, and they are answerable to stakeholders on the organization's performance.
  • Middle-level management consists of the branch and departmental managers. They receive directives from the top management and implement them. Also, they form plans for several departments. In addition, managers aid in training, assessing, and evaluating lower-level employees. More so, they coordinate activities for their respective departments. Lastly, they send important data and reports to top-level management.
  • Lower level management consists of supervisors, forepersons, or section officers. They interact with workers at personal level. Managers are responsible for assigning tasks and guiding employees. Also, they maintain a good working relationship between employees and the organization. Moreover, they are tasked with quality maintenance and efficient production. Additionally, they air worker's grievances and resolve it with the upper management. Lastly, low-level managers prepare reports on employee's progress or job performance.
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