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Departmentalization, span of control, centralization, formalization

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AT&T has been chosen as one of the great public Fortune 500 companies nowadays. Outlining the 4 key organizational components

1- Departmentalization:

Does the organization make much use of the network structure?
Answer yes or no! Expand on the answer; what is your rationale?
If so, what aspects of the organization's activities are contracted out?
In addition to the obvious answer; give your perspective on whether or not the activities should be contracted out! Why? Why not?

2-Span of Control:

How many hierarchical levels does it seem to have?
Provide the answer! Is this just right, too few or too many? Why? Use secondary research here, look for a comparison?


1. In general, does this organization have centralized or decentralized decision-making?
Explain your answer? Why have they used one or the other? Do you agree/disagree? Why? What are pros and cons of each?
2.To what extent do nonmanagement employees participate in organizational decisions?
Provide your answer! If yes; how does this benefit or impact decisions? If no, what is the impact on morale? What would you recommend to the company going forward? Cite a competitor and how that company views employee participation


Do nonmanagement employees have much discretion over their work or do they act mainly on programmed decisions?
Provide your response! Do you agree with the company's position? Why? Why not? What would you recommend? Why?

Please cite your resource material.

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Solution Preview

AT&T is the prominent supplier of local, long distance telephone services in the United States. In addition to this, it also trades digital subscriber line Internet access and digital television. It is the second major supplier of wireless service in the United States. It has more than 81.6 million wireless customers and more than 150 million entire customers. The company was established in 1983 as SBC Communications Inc. Here in this paper, we will discuss about the company's different organizational components.


Yes, the organization makes much use of network structure, as it believes that it is essential to maintain its position in the industry. Due to this notion, from time to time the company is investing for improving its networks. Presently also company had invested a lot of amount in regard to defending its wireless network so that its position in comparison to its competitors can be maintained (Svensson, 2010).

The company's sales and customer care aspects related with their activities are contracted out and this is because of the problems, confronted by the company Consumer's Services' long distance business unit. Due to these challenges, the ...

Solution Summary

The expert examines departmentalization, span of control, centralization and formalization for AT&T.