Answered: Refer to the organization charts…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

Refer to the organization charts labeled Structure A
and Structure B in the figure for problem 12.

a. For the organizational structure A, describe the
1. advantages and disadvantages of this structure.
2. impact of the resulting span of control.
3. effect of the organizational structure on employee behavior.

b. For the flat organizational structure B, describe the
1. advantages and disadvantages of that organizational structure.
2. impact of the resulting span of control.
3. effect of the organizational structure on employee behavior.

c. When determining the appropriate span of control for a company, discuss the factors that should be considered.

PROBLEM 12: ORGANIZATIONAL STRUCTURE AND SPAN OF CONTROL
Structure A
VP
Production
Manager of
Procurement
Manager of
Manufacturing
Assistant
Manager
Procurement
Plant
Supervisor
Inventory
Control
Manager
Sub
Production
Assembly
Supervisor
Supervisor
Quality Control
(3)
Warehouse
Purchasing
(3)
Grinding
(3)
Fitting
(3)
Welding
(3)
(3)
Production Line
Production Line
A
B
(8)
(8)
Structure B
VP
Production
Manager of
Procurement
Manager of
Manufacturing
Purchasing Quality Control
(3)
Warehouse
(3)
(3)
Production Line
Production Line
Grinding
(3)
Fitting
(3)
Welding
(3)
A
(8)
(8)

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