Super LLC which basically manufactures consumer products decided to produce additional type of products which are cosmetics and health care products. The company functions were mainly divided into various functions like Purchase, Production, Marketing, Finance, Quality Control and Human Resources. Each section is headed by a Manager and employees are grouped as per their role. This type of structure will ensure that employees are making use of their skills effectively. This organizational structure was enough to design similar groups and related jobs together. They continue with same type of structure without considering the new decision. Unfortunately, Health Care production failed and affected the production of all product types. Reasons identified for the failure includes poor communication and lack of understanding across the units. This made the operations more complicated and the management could not easily understand due to various technicalities. Moreover workers were confused by a number of new instructions from different service heads. This created imbalance because of the new change in production department which resulted in problems that required the management to reconsider the new decisions and think of restructuring the business.  The management then decided to redesign the structure which can accommodate separate business units. They also considered the structure should be self-contained as it will develop expertise related to the product lines. Questions a)Identify and explain the organizational structure type followed by Super LLC in the beginning; Explain its drawbacks:(3 marks) b)Suggest a new organization structure type that would help the company to successfully operate with the new change; Justify your answer:(4 marks) c)Draw the new organizational chart for this company based on your answer for (b):(3 marks)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

 

C3

 

Super LLC which basically manufactures consumer products decided to produce additional type of products which are cosmetics and health care products. The company functions were mainly divided into various functions like Purchase, Production, Marketing, Finance, Quality Control and Human Resources. Each section is headed by a Manager and employees are grouped as per their role. This type of structure will ensure that employees are making use of their skills effectively. This organizational structure was enough to design similar groups and related jobs together. They continue with same type of structure without considering the new decision. Unfortunately, Health Care production failed and affected the production of all product types.

Reasons identified for the failure includes poor communication and lack of understanding across the units. This made the operations more complicated and the management could not easily understand due to various technicalities. Moreover workers were confused by a number of new instructions from different service heads. This created imbalance because of the new change in production department which resulted in problems that required the management to reconsider the new decisions and think of restructuring the business.  The management then decided to redesign the structure which can accommodate separate business units. They also considered the structure should be self-contained as it will develop expertise related to the product lines.

Questions

a)Identify and explain the organizational structure type followed by Super LLC in the beginning; Explain its drawbacks:(3 marks)

b)Suggest a new organization structure type that would help the company to successfully operate with the new change; Justify your answer:(4 marks)

c)Draw the new organizational chart for this company based on your answer for (b):(3 marks)

Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Financial statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.