When designing organizational structure, managers must make decisions about every department and business unit in the organization. All of these decisions shape the organization$$s structure to suit its unique environment. Factors that managers must consider include span of control, vertical differentiation, and horizontal differentiation, among others.

Match each managerial decision with the correct term.

task specialization vertical differentiation span of control chain of command horizontal differentiation

Match each of the options above to the items below.

A housekeeping service classifies its employees and positions according to rank and authority. At the highest level are the company$$s owners; at the lowest level are the people who clean the houses and office buildings. In between are different levels of managers.

$4$

The kitchen manager at a restaurant decides that all kitchen employees will have specific and different tasks. The kitchen staff is divided into chefs, prep cooks, dessert chefs, appetizer cooks, and salad preparers. Assigning different roles to each employee allows them to develop unique skills and become more productive.

$2$

The CEO of a moving company realizes that parents spend a lot of time and energy in moving their college$-$age children back and forth to school at the beginning and end of each academic year. To capture this market and increase the company$$s profitability, the CEO creates a $$College Student$$ department to offer reasonably priced moving services to college students and their parents.

$3$

The general manager of a car dealership decides that each manager should supervise a maximum of seven employees.

$5$

The organization chart of Undercliff Corporation shows a clear line of authority: Gerry $($a salesman$)$ reports to Erin $($a district sales manager$),$ who in turn reports to Joaquin $($a regional sales manager$),$ who in turn reports to Katrina $($the company$$s national sales manager and top sales executive$).$