Question

A large electronics manufacturing firm makes HD televisions for export around the world. The firm is fairly new. This industry is extremely price competitive; building a solid market share quickly is the only path to survival. The company makes a limited number of models so that manufacturing can be standardized. This also keeps quality high, which is a must. All employees work at the main factory, except for a handful of sales teams who have small offices in key cities around the world. Not much changes in the company from month-to-month, except that sales volume is steadily increasing. When designing their organization structure, what choices will support the goals and culture of this organization? Select the five choices that apply.

a. Line structure at headquarters

b. Organize company by function

c. Managers with wide span of management

d. Organize company by customer

e. Organize company by location

f. Line-and-staff structure at headquarters

g. Managers with narrow span of management

h. Centralize decision making at headquarters

i. Decentralize decision making to the sales offices

j. Jobs with high degree of specialization

k. Matrix structure at headquarters

l. Jobs with high degree of variety

Answer 1

I would select the following 5 options=

Organize the company by function

Line-and-staff at headquarters

Managers with a narrow span of management

Jobs with a high degree of specialization

Decentralize decision making to the sales offices

Reason= As there is a steady increase in the sales of the organization, the most important aspect of the company structure should be on improving the efficiency of the operations. The different departments can be divided on the basis of their operations and they must operate in a cross-functional or matrix form so that they can interact for effective decision making. There must be a proper reporting system in the organization to avoid chaos and confusion indicating the well-defined line and staff organization.

As the focus is on quality and efficiency, so the employees would be selected on the basis of their expertise in their respective fields. As the sales are increasing thus in order to support the sales division and to make the prompt decision making to avoid the competitors to take the advantage of delayed decision making the sales offices must be given the liberty to take sales-related decisions.

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