Organizational Theory

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Chapter 9

Why do large corporations tend to have larger ratios of clerical and administrative support staff? Why are they typically more formalized than small organizations?

The clerical ratio increases because of the greater communication and reporting requirements needed as organizations grow larger. The professional staff ratio can increase due to the greater need for specialized skills in a larger corporation. As organizations increase in size, the administrative ratios declines and the ratios for other support groups will increase. Large corporations can have a wide range of functional specialties within the organization that perform multifaceted tasks and produce various products. For this reason, larger corporations are more formalized due to the complexity. Rules, procedures, controls and policy manual are needed in order to efficiently operate in a larger corporation. Large organizations rely on these rules and procedures to achieve and control the large number of employees and departments. Smaller organizations have simpler operations and a smaller number of employees which would not require detailed manuals or polices. The company may be so small that every employee physically sees each other every day and communicates on a regular basis.

Question 7

Government organizations often seem more bureaucratic than for-profit organizations. Could this partly be the result of the type of control used in government organizations? Government organizations are more bureaucratic than for profit organizations because government organizations have a much larger number of clerical and administrative staff members. Considering that there are large numbers of groups in governmental organizations, bureaucracy is an effective way to minimize abuses of power and gain control. Bureaucracy also provides a systematic and rational way to organize and manage complex tasks that are too difficult to be understood and handled by few...
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