1. Diagnosis is the step in which managers analyze the underlying causal factors associated with the decision situation. Managers make a big mistake if they jump right into generating alternatives without first exploring the cause of the problem more deeply. Studies recommend that a series of questions be asked.
2. The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom.
3. Scalar principle means that each employee is held accountable to only one supervisor. Unity of Command refers to a clearly defined line of authority in the organization that includes all employees.
4. The virtual network structure disaggregates major functions to separate companies that are brokered by a small headquarters organization.