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(Henri Fayol, General and Industrial Administration New York: Pitman Publishing Corporation, 1949, pg20) For a large-scale company like Fletcher Construction, it is essential to group activities and employees into different departments. Without this, the organisation cannot effectively expand: The managerial job would become intolerably complex, and the span of management would limit top manager’s ability to increase the number of immediate subordinate managers. Fletcher Construction applied the principle of unity of direction by dividing its company to four separate departments: Building, Engineering, Interiors and South Pacific...
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