After reading this article you will learn about:- 1. Causes of External Growth Strategy 2. Merits of External Growth Strategy 3. Limitations. Causes of External Growth Strategy: 1. Economies of scale: Small firms have limited resources (financial and non-financial) and generally produce goods at high cost. They buy in small quantities and, therefore, pay high price for materials and other [...]
After reading this article you will learn about:- 1. Meaning of Span of Management 2. Factors Affecting Span of Management 3. Graicunas Theory. Meaning of Span of Management: Depending upon the complexity of organisational activities and relationships amongst superiors and subordinates, it becomes important the superiors manage an optimum number of subordinates that result in optimum organisational output. All the [...]
After reading this article you will learn about:- 1. Meaning of Formal Organisation 2. Features of Formal Organisation 3. Merits 4. Limitations. Meaning of Formal Organisation: Formal organisation is a well-defined structure of authority and responsibility that defines delegation of authority and relationships amongst the organisational members. It works along pre-defined set of policies, plans, procedures, schedules and programmes. Most [...]