Convenience

Discussion Questions
1.
In what respects do the survey responses agree or
disagree?
2.
What might account for some of the differences in
individual scores?
3.
How can you make constructive use of the survey
results?
Source:
From GRIFFIN,
Exercises for Griffin’s Management
, 8E.
© 2005 Cengage Learning.
EXPERIENTIAL EXERCISE
Purpose:
Organization design
refers to the overall set
of elements used to configure an organization. The
purpose of this exercise is to give you insights into
how managers must make decisions within the context
of creating an organization design.
Introduction:
Whenever a new enterprise is started,
the owner must make decisions about how to structure
the organization. For example, he or she must decide
what functions are required, how those functions will
be broken down into individual jobs, how those jobs
186
Part 3:
Organizing
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will be grouped back together into logical departments,
and how authority and responsibility will be allocated
across positions.
Instructions:
Assume that you have decided to open a
handmade chocolate business in your local community.
Your products will be traditional bars and novelty-shaped
chocolates, truffles, other chocolate products such as ice
cream, and gift baskets and boxes featuring chocolates.
You have hired a talented chef and believe that her exper-
tise, coupled with your unique designs and high-quality
ingredients, will make your products very popular. You
have also inherited enough money to get your business
up and running and to cover about one year of living
expenses (in other words, you do not need to pay yourself
a salary).
You intend to buy food items, including chocolate,
cocoa, white chocolate, nuts, and fruit, from suppliers
who deliver to your area. Your chef will then turn those
ingredients into luscious products that will then be
attractively packaged. Local grocery store owners and
restaurant chefs have seen samples of your products
and indicated a keen interest in selling them. You
know, however, that you will still need to service
accounts and keep your customers happy. At the pres-
ent time, you are trying to determine how many people
you need to get your business going and how to group
them most effectively into an organization. You realize
that you can start out quite small and then expand as
sales warrant. However, you also worry that if you are
continually adding people and rearranging your
organization, confusion and inefficiency may result.
Under each of the following scenarios, decide how
best to design your organization. Sketch a basic organi-
zation chart to show your thoughts.
•
Scenario 1
. You will design and sell the products
yourself, as well as oversee production. You will
start with a workforce of five people.
•
Scenario 2
. You intend to devote all of your time to
sales to increase revenues, leaving all other functions
to others. You will start with a workforce of nine
people.
•
Scenario 3
. You do not intend to handle any one
function yourself but will instead oversee the entire
operation and will start with a workforce of 15
people.
1.
After you have created your organization chart,
form small groups of four to five people each.
Compare your various organization charts, focus-
ing on similarities and differences.
2.
Working in the same group, assume that five years
have passed and that your business has been a
big success. You have a large factory for making
your chocolates and are shipping them to 15
states. You employ almost 500 people. Create an
organization design that you think fits this organi-
zation best.