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(solution) Now assume that five years have passed and that your business has

Now assume that five years have passed and that your business has been a big success.  You have a large factory that makes your chocolates and ships them to 15 states.  You employ almost 500 people.  Create an organization design that you think best fits this organization.  How many departments do you think you will need?



SHORT RESPONSE QUESTIONS Essentials of Management


Jane Smith


Allied American University AUTHOR NOTE


The author of this article is Unknown. This article was published Unknown on Unknown. There


are currently no author notes.


This paper was prepared for Essentials of Management, Module 3 Homework Assignment Part I


taught by Unknown. SHORT RESPONSE QUESTIONS 2 1. What is departmentalization and what are its most common forms? ANSWER: Departmentalization is the grouping of jobs so that the employees in growing


business can be managed and overseen much better. Functional departmentalization is the most


common form of departmentalization it is used when you are grouping jobs according to the


same or similar activities. It is used mostly in small businesses and comes with three primary


advantages. Another common use of departmentalization is product departmentalization which is


mostly used by large firms but it is the grouping of activities around products or product groups.


Product departmentalization also has three primary advantages


2. In this module, you learned about the basic forms of organization design including the U- form, H-form, M-form, and the Matrix design. Describe the basic forms of organization design.


What are the advantages and disadvantages of each?


ANSWER: The functional design is an arrangement from the functional approach for


departmentalization it is also called the U-form approach. The U stands for unitary. With this


design the members and units in the organization are grouped into functional departments such


as marketing and production. The approach has some basic advantages and disadvantages. The


advantage is the organization can staff all important positions with functional experts and it


facilitates coordination and integration. The disadvantage is it promotes a functional, rather than


an organizational focus and tends to promote centralization. The conglomerate design also


called the h- form, the h stands for holding. It is used by organization made up of a set of


unrelated businesses. The advantage in an H-form organization a corporate staff evaluates the


performance of each business and make decisions about buying and selling businesses. The SHORT RESPONSE QUESTIONS 3


disadvantage of the H-form design is the complexity associated with holding diverse and


unrelated businesses. A divisional design is becoming popular in today?s businesses, also called


the M-form. The m stands for multidivisional on multiple businesses in the same areas operating


within a larger organizational framework. The design results in a strategy of the same


diversification. The advantage of it is to be to optimize internal competition and cooperation.


There doesn?t seem to be many disadvantages of it. The matrix design is another common


method to organization design. Employees in matrix are same members of a functional


department. They are made of project managers and teams that are assigned to designated


projects or programs. Some advantages are that they create flexibility. Another one is that they


make the employees loyal because they are given a higher role from the start. A few


disadvantages are employees are unsure about reporting relationships and groups take longer


than individuals to make decisions.


3. Read the Experiential Exercise on pages 178 and 179 in your textbook. Select one of these scenarios:


Then perform the following:


? Why did you choose the scenario with five people or the scenario with nine people? ? Explain the organizational design you will use. Explain in your own words how your organizational design will help the company function and work. (Note: You must use one of the


designs you learned about in the chapter: H-form, M-form, U-form, or matrix. Explain why you


chose that form for your company. In addition to your written explanation you may draw your


organizational design, as well.) SHORT RESPONSE QUESTIONS 4


ANSWER: I choose the second scenario with nine people because of the need for the sales


department to focus on customer satisfaction in order to increase sales volume and profitability.


The success of sales efforts requires drastic actions and strategies that can only be achieved while


working with several individuals. In addition to this the sales departments have different subbranches that can help in spearheading improved profitability. The organizational design that


will be applied in scenario two will entail construction of a chart outlining the placement and


responsibilities of every player in the sales process. Within the top most level, there will be the


sales director. The level of sales management will entail divisions including sales supervisor,


distribution management, business manager, promotion supervisor, logistics supervisor, transport


manager, innovations supervisor, training supervisor, security supervisor, communications


manager, and customer support executive. The third level will consist of sub-divisions of the


departments expressed in the second level of the hierarchy. It will be comprised of offices for


sales engineer, sales representatives, distribution executive, business assistant, business


representative, promotion executive, and logistics staff, among others. The other staff members


will occupy the fourth and fifth levels of the organizational design. This proposed organizational


design will be instrumental in helping the company achieve its functions and goals in that there it


indicates a clear interdependence of every sales organ. Integration is also put in place


considering that duties conducted by logistics, transport, security, distribution, and


communications manager will be aligned to help globalize potential markets. By doing this it


will also aid in identifying promotion avenues for the finished products. The duty of the


communications manager will be to deliver information from the top sales organ to every tier of


the organizational structure. M-form design has been used for the organizational model since it SHORT RESPONSE QUESTIONS 5


sufficiently describes the roles of every department. In addition, it is easier to see how work is


distributed within the sales department.


4. Based upon your response to question #3, please answer the following questions: ? What are your thoughts about starting out too large to maintain stability, as opposed to starting small and then growing?


ANSWER: I feel if you start out to large you may not have the right finances or equipment or


even the right personnel at the moment to start out big and once you do jump right in and decide


you?re going to go big you can?t just stop everything and say hey lets go small. I think by


starting out small you are giving yourself time to build up to what you are trying to become and


if you have a setback it won?t hurt you as much as it would for you to go big.


? What basic factors did you consider when choosing a design? ANSWER: I mean I looked at the scenario and then went to my book to determine which


organization design fit in best with the scenario. I considered that you?re not handling anything


and that you have different division that are being handled by different president or vice


presidents but you are the overseer of them all.


? Now assume that five years have passed and that your business has been a big success. You have a large factory that makes your chocolates and ships them to 15 states. You employ


almost 500 people. Create an organization design that you think best fits this organization. How


many departments do you think you will need?




Griffin, R.W. (2014). Fundamentals of Management (7th Edition)


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Sep 13, 2020





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