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12

Accounting

12. ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer to the organization

charts labeled Structure A and Structure B in the figure for problem 12. PROBLEM 12: ORGANIZATIONAL STRUCTURE AND SPAN OF CONTROL VP Production Purchasing (3) Quality Control (3) Warehouse (3) Warehouse (3) Grinding (3) Fitting (3) Welding (3) Grinding (3) Fitting (3) Welding (3) Production Line A (8) Manager of Procurement Manager of Manufacturing Assistant Manager Procurement Inventory Control Manager Plant Supervisor Sub Assembly Supervisor Production Supervisor VP Production Purchasing (3) Quality Control (3) Manager of Procurement Manager of Manufacturing Production Line B (8) Production Line A (8) Production Line B (8) Structure A Structure B CHAPTER 8 Financial Reporting and Management Reporting Systems 371 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. WCN 02-200-203 Required a. For the organizational structure A, describe the 1. advantages and disadvantages of this structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. b. For the flat organizational structure B, describe the 1. advantages and disadvantages of that organizational structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. c. When determining the appropriate span of control for a company, discuss the factors that should be considered.

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