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 1
SHORT RESPONSE QUESTIONS Essentials of Management
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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?
Reference: SHORT RESPONSE QUESTIONS 6
Griffin, R.W. (2014). Fundamentals of Management (7th Edition)