111.Businesses seldom create separate departments to serve customers with different needs.
112.Rise ‘n Shine Bakeries is a nationwide bakery that has plants located throughout the United States. Top management at Rise ‘n Shine believes that customers in different regions have different tastes. It also recognizes that its bakeries face more intense competition in some regions than in others. Therefore, Rise ‘n Shine's top management gives local managers the freedom to offer different types of breads and desserts, and to decide on a reasonable pricing strategy for its products. Rise ‘n Shine typifies a decentralized organization.
113.Management at Hottie Potatee, a nationwide potato bar chain, believes that its customers value a predictable and consistent level of service and quality. When customers stop at one of its potato bar chain restaurants anywhere in the United States, they should know what to expect in terms of menu, price and quality. In order to maintain this consistency, Hottie Potatee should adopt a decentralized organization.
114.A study at the Slumber Inn Corporation identified poor employee morale. Employee respondents indicated frustration with their inability to deal directly with customers' concerns and complaints. These employees feel that if they were empowered with the authority to make decisions, customer satisfaction would dramatically increase. This illustrates one of the disadvantages of decentralized authority.
115.In the Crescent City manufacturing plant of the Granite Works Corporation, a foreman supervises workers. The foreman reports to the shift supervisor who reports to the head of the production department, who then reports to the assistant plant manager, who reports to the plant manager. The plant manager, in turn, reports to a district manager, who then reports to a product group manager, who reports to an assistant vice president of operations, who keeps in close touch with an executive vice president. The layers of management indicate that Granite Works Corporation is a tall organization.
116.Martina is an experienced manager with excellent communications skills. The workers in her area are highly skilled and capable of doing their work with very little direct supervision. Martina's span of control is likely to be quite broad.
117.Rome Corporation is organized into departments such as finance, production, marketing, data processing, and accounting. Rome has chosen to departmentalize by function.
118.Top management at Topdown, Inc. wants to encourage communication between different departments and prevent employees from becoming narrow specialists. The best way to accomplish these goals is to departmentalize Topdown's organization by function.
119.Green Landscapes, Inc., a company that installs underground sprinkler systems serves several commercial customers, as well as residential customers. As the business expands, Green Landscapes management may want to consider departmentalizing by customer group and then by process.
120.Jesse started a successful telecommunications company that provided voicemail services to business clients in the Midwest. As the business grew, Jesse added functional departments including a marketing department and an accounting department. After a few years, he realized that employees who specialized in these areas no longer shared knowledge with each other in the same way they did when the operation was smaller. As one of Jesse's business consultants, you explain that as the company grows taller, it cannot avoid this pitfall, and he should focus on continued functional departmentalization, especially if he supports innovation and learning.