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Organizational Theory (Subject) / Chapter four (Lesson)

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• Definition empowerment giving the employees power in decision making
• Self-managed Teams work groups who are responsible that team is accomplished goals
• Ideal number of hierarchical levels BEP decision extra manager-->difference value cost
• Principles of Minimum chain of demand Organizations should be kept flat as possible fewest managers possible
• Span of control numbers of subordinates a manager directly manages
• The principles of bureaucracy organizational structure in which people can held accountable, they need to act in accordance with rules
• advantages bureaucracy control between levels clear role, no questions transaction costs are reduced
• Problems with bureaucracy organizational structure becomes tall, centralized and inflexible managers make more work for each other member forget about creation of value
• Management by objectives A system of evaluating subordinates on their ability to achieve specific org. goals

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