The Structure Of Administrative Coordination

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According to Alfred Chandler (1977), the structure involved ‘administrative coordination’ can bring higher profit, productive and lower cost. He describes it as “The visible hand”. He believe the traditional will be gradually replaced by the multi-unit ‘modern business enterprise’ The top of the mine-and-staff structure based organization is the top management, then middle management, lower management and foremen, supervisors and so forth. (See figure 1) The command send from the top manager to the middle manager, then the mission will be allocated to the lower level until to the front-line staff. A person in a line position is directly involved in achieving the basic objectives of the organization. A person in a staff position, by…show more content…
While, the indirect cost refers a cost that cannot easily and conveniently be traced to the particular cost object under consideration. (Seal, 2011, pp 35-36)

In other words, the direct cost is a direct relationship with the production process, while the indirect costs are not a direct relationship with the production process, the cost of services in the production process. Within a period of total indirect costs are essentially constant, it is also known as fixed costs and indirect costs. Although its total output within a certain range does not substantially change with production, but allocated to indirect costs per unit of product decreases with the increase in production. For example, a company produced can food. Each food cans have direct costs, including the cost of ingredients, pots, you can label, wages involved in the production of canned food, canned and tag content of workers and machinery in the process of actual power consumption. There are also indirect costs including multi pack packaging; administrative costs, including salaries of administrative and management personnel, equipment, etc.; premises rented; total power utility costs and other buildings, as well as marketing and
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