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Word Count: 800
Good morning ladies and gentlemen Today well discuss the problem that often appears towards the manager This is a problem of organizational choice or how to group product activities by product or by function In other words should all specialists in a given function be grouped under a common boss regardless of differences in products they are involved in or should the various functional specialists working on a single product be grouped together under the same superior But the aim of our presentation is not to persuade you that only one way is the right and only this way should be used in each organization Well try to show you that each reorganization is temporary and manager always have to find some middle positions between that two ways of organization he have to find some compromise Another point Id like to underline that all our presentation will be told from the behavioral scientists viewpoint So during our presentation well offer you some elements to consider then well talk about behaviorists findings on that matter and consider the example with two plants After that well summarize all our presentation and maybe give some useful advice for managers If that clear let me begin our presentation First of all we have to understand what makes those issues so difficult It is useful to review all the criteria often relied on during making decisions Typically managers have used technical and economic criteria For example they may ask themselves Which choice will minimize payroll costs or Which will best utilize equipment and specialists This approach shows us the real logic of traditional management and has strong support from classical school of organizational theory The classical school theorists suggested that the manager should make the choice based on the following three criteria Which approach permits maximum use of special technical knowledge Which provides the most efficient utilization of machinery and equipment Which provides the best hope of obtaining the required
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