CHAPTER 5

Organization Structure

Organizations are put together so that the entity can conduct its business most efficiently and so that the owners or top management can multiply their effectiveness—that is, to maximize their desired results. Organizing is intended to be a helping process to enable management to conduct the business better. Realistically, for many organizations, it has become a costly getting-in-the-way process.

Adequate organizational control requires that each employee know clearly what his or her role and function are in the organization, and exactly what authority and responsibility have been assigned. It also requires proper separation of duties so that the same individual is not charged with the responsibility of recording ...

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