Chapter 10 and 11-Homework

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Chuka University College *

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MATH 856

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Business

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Nov 24, 2024

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Dr. Eshra BUS451 Must submit typed homework through Blackboard by due date Delete the blank lines and type your answers in their place No e-mail submissions/hard copies will be accepted Name:______________________________ Ch. 10 & 11—Homework Part I: Answer the following questions: Q1: What is the difference between a tall and a flat organization? What are the advantages and disadvantages of each? Tall organization The management structure is vertical, with authority resting squarely in the hands of the CEO or owner, who determines the company's mission, culture, and strategy. Advantages It fosters a culture of responsibility inside the organization. Staff collaboration and speed of communication are improved, and extra layers of management are eliminated Eliminating the pay of middle management minimizes the budget expenditures of a firm. Disadvantages Employees may be less empowered to make choices in a highly hierarchical firm since management is more likely to be rigid. Staffing a company with a tall organizational structure is more expensive since supervisors are needed for each department. Only the lowest-level staff will interact with consumers Flat organization This organization have few or no layers of management between the top executives and the workers on the front lines. Advantages Improved inter-departmental communication and working relationships. Page 1 of 4
Dr. Eshra BUS451 Must submit typed homework through Blackboard by due date Delete the blank lines and type your answers in their place No e-mail submissions/hard copies will be accepted Increased unity due to a flatter organizational structure. Due to the shorter chain of command, decisions may be made more quickly and with less complexity. Improved capacity for the company to evolve and grow. Disadvantages Lack of a clear chain of command typically leads to disorganization and potential power disputes among upper management. Flat organizations breed many generalists but very few experts. Employees may not know their exact responsibilities. Larger companies have a harder time adjusting to the flat form. Q2: What is corporate restructuring? When should it be pursued? Corporate restructuring is any corporate activity performed to alter the capital structure or operations of the corporation dramatically. When an organization is having problems and might go bankrupt, it may undergo corporate restructuring. Restructuring a company's operations may be undertaken for various reasons, including declining earnings; market or economic pressures and trends; management or strategy changes; or a need to boost cash flow. Q3: Explain transformational and transactional leadership styles and give examples of each. Identify the conditions under which each is likely to be effective. Transformational leadership emphasizes encouraging others to follow and requires a high organization, communication, and collaboration. The leadership style is effective in corporations whose main objective is skills development instead of attaining an immediate output quota or sales target. Transformational leadership may also be favored in environments where a new Page 2 of 4
Dr. Eshra BUS451 Must submit typed homework through Blackboard by due date Delete the blank lines and type your answers in their place No e-mail submissions/hard copies will be accepted product or service is introduced or in industries where innovation is essential for survival. An example of transformational leader is Oprah Winfrey. Transactional leadership depend on procedures and control which demands a stiff management structure. This approach is most effective when rules must be followed, and when hierarchy is essential. Examples of institutions that apply this leadership style is the military and large companies. Transactional settings may also be seen in education, as procedural systems are used to grade pupils and encourage them to do better. Q4: To what extent can leaders institute change in their organizations? Practically speaking, how is this accomplished? Leaders support and execute change within their own areas of influence for it to be successful in an organization. Executives promote transformation at their respective organizational echelons. Second, those who are tasked with effecting change are proactive. They act and think in ways that are expected of everyone. Third, because they have access to all the project funds, leaders are usually in a position to make decisions that will have an impact. Also, because of their frequent interactions to spread information, keep people informed, and provide support, leaders are the "face and voice" of change. At the end of the day, leaders are the ones that spark movement toward a better future and enlist their followers in the effort. They make the transition seem important and urgent, and they are clearly invested in seeing it through. Part II: Read case study “Ford” at the end of chapter 10 on page 257 and answer the questions that follow 1._____________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ Page 3 of 4
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Dr. Eshra BUS451 Must submit typed homework through Blackboard by due date Delete the blank lines and type your answers in their place No e-mail submissions/hard copies will be accepted _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ 2._____________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ 3._____________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ Page 4 of 4