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Hi Class, So, why does differentiation occur in an organization? Distinguish between vertical and horizontal differentiation.

User Sotix
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Answer:

Differentiation occurs because as organizations grow and become more complex, they establish a division of work. Vertical differentiation is a ranking of power with reporting relationships established to connect organizational roles and sub-units. Where horizontal differentiation are group roles according to task responsibilities, establishes division of power, and forms sub-units.

User Alan Krueger
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