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Mr. Sikorski: You are one of the leading 1_______ on management. 2_______?
Mr. Sage: Basically it’s a functional form of organization with departments for Marketing, Production, Finance and so on.
Mr. Sikorski: If I’m not mistaken, this form is more common for small firms, isn’t it?
Mr. Sage: Yes, it is. As the firms become larger and more complex departmentalization by product, territory or customer may be more effective.
Mr. Sikorski: I see. Organization structure also includes an idea of relationship between the positions and people who hold the positions. What can you say here?
Mr. Sage: 3_______.
Mr. Sikorski: Yes, but as far as I know, the line organization works only for small companies. Large companies need people who are not a part of the chain of command.
Mr. Sage: That’s right. Large companies need people like lawyers, financial and other experts whose jobs are known as staff positions. Large companies use a line and staff organization structure.
Mr. Sikorski: And what span of management is best?
Mr. Sage: You’ve raised the most difficult question I must say. There is no one answer to it. In general, a broad span of management reduces a total number of managers but a narrow span makes possible close supervision.
Mr. Sikorski: What’s the most typical management hierarchy in the US companies?
Mr. Sage: Typically, there are three levels within management. They are supervisory managers, middle managers, and top managers.
Mr. Sikorski: What’s your idea of a 4_______ business?
Mr. Sage: I, personally, believe that business is well managed if everyone has a clear idea of what his or her job is.
Mr. Sikorski: I can’t agree more with you.
experts
What are general principles of company’s organizational structure in the USA
The oldest type of organizational structure is the line organization
well-managed