Question

I want to prepare a power point slides based on the case study below,

Bagby Copy Company is a worldwide producer of copy machines. It manufactures 10 different copiers, ranging from low-end desktop copiers that sell for a few hundred dollars to high-volume docu- ment machines that retail for over $200,000. Each copy machine requires a wiring bundle. Each bundle contains several hundred wires and connectors that provide circuits connecting the paper-flow units, scanner, and photoreceptor to the internal computer logic. The wire harness is plugged into various components during the assem- bly process. It is possible to assign each major task in this process to different employees. For example, a given employee might focus on one of the many connectors or on testing the completed wire har- ness. Alternatively, one individual might be as- signed the task of producing and testing a completed harness. In either case, there is a group of employees that is assigned individual tasks to produce a wire har- ness for a particular copier. In total, there are 10 subgroups of wire harness makers. One alternative is to place all 10 groups in one wire harness depart- ment. Another alternative is that each of these 10 subgroups can be assigned to and report to a man- ager responsible for a particular copier. Bagby operates in five European countries. Currently, it has separate subunits in each country, where a country manager handles the manufactur- ing and marketing of all 10 copiers. The company is considering two alternatives. One would be to organize its foreign operations around products. In this case, there would be 10 international prod- uct managers with decision rights for managing the manufacturing and sale of a particular copier throughout Europe. The company also is consider- ing a matrix organization, organized around product and country. 1. What are the trade-offs that Bagby faces in choosing between specialized and broad task assignment? 2. What are the trade-offs between these two methods of grouping wire harness makers into subgroups? 3. Which trade-offs does Bagby face in choosing among the country, product, and matrix forms of organizing its international operations?

Answer 1

Key Points in the case

• 10 different types of copier
• Ranging from few 100 dollars to $200000
• Machine has à Wiring bundle has à Several Hundred Wires
• 10 subgroups of wire harness makers

1. Bagby is facing trade-off while choosing on the specialised and broad tasks: as specialized function is focus on the specific tasks whereas the broad function would require employees to get cross-trained in all the departments. This may lead up to a problem as there will be no experts on specialized tasks. In specific tasks there is no or minimal cost of training where as it might be huge when compared to broad. Specialized tasks not only can prove to be more efficient but also low cost.

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2. Grouping the employees in wire harness department would ensure the harmony and smoothness in the process. Communication flow will be smooth. There will be well defined structure and growth for the employees. The problem with this is that there will be more focus on only one process and not the broader aspect. By making subgroups under the individual copier manager would help them function across the different domain.

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3. Country Grouping: Country grouping is good in a way that the employees will have greater perspectives about the need of the customers in each country. As the taste and demand varies country-wise. However, this can have a negative effect on the knowledge sharing within a product line in that particular country

Product Grouping: Product grouping ensure a smooth flow of knowledge within a product line in the country which will improve coordination on efficiency.

Matrix Structure: Matrix structure is built on the strengths of both country and product grouping. The problem occurs on the overlap. It sometimes becomes difficult for employees to get the clearer picture of the strategy and their growth path.