Eight years ago, ms. jones, a farmer, inherited a large parcel of land that had a fair market value of $150,000 at that time. sh
e used the large parcel in her farming operations. in the current year, ms. jones decided she no longer wanted the large parcel in her farm operations, so she offered it for sale for $250,000. mr. oak approached ms. jones with an offer to exchange a small parcel (which ms. jones wanted for her farming operations) and some farm equipment for the large parcel. the small parcel had a fair market value of $200,000, and the equipment had a fair market value of $50,000.
The communication channels created by the organizational structure serve specific functions through downward, upward and lateral communication. Thus an organization's structure must facilitate this effective flow of communication.