Delta Tile Company is owned by Tom Slate, a craftsman who has a reputation for designing and producing a quality product. Tom has operated his business himself, but he now seeks your guidance in helping him reorganize and expand his operation. His business has grown dramatically over the past year, and he now has over 30 production employees, two supervisors, two quality control inspectors, a secretary, and a bookkeeper. Tom and his wife do all of the selling. Tom is planning to hire 20 additional production workers soon, and he expects to assign them to the two existing supervisors.
Tom’s company is in a very competitive and changing industry, and he thus feels it necessary to produce two dozen different products. Every year each product comes out in a new model, incorporating color and texture changes. The production of each tile requires seven separate processes. “I used to handle it all myself,” he tells you. “But things are moving so fast I can’t keep trying to do all the things that need doing myself. Between designing the product, managing production, and handling sales in the field—it’s going to get away from me if I don’t get organized!”
Delta will grow to nearly 60 employees by year’s end. Unless you can come up with a better plan, the production workers will report to the two supervisors, and these supervisors as well as all other personnel will report directly to Tom.
- Draw an organizational chart depicting your new organizational structure. New positions can be created but no new hires, aside from those already planned, will be allowed.
- All principles of organizational design must be followed.
- Discuss the following:
- Type of departmentalization used including justification;
- Number of staff and line positions in the organization;
- Discuss of duties for each position;
- Justification for each position;
- Justification for placement of each position;
- Justification for each promotion or movement;
- If testing used for promotion, discuss validity and reliability of the instrument.
- Span of control for each manager/supervisor;
- Justification for span of control for each manager/supervisor;
- Differentiate between new (N) and senior (S) production workers;
- Which position has the widest span of control?
- How many staff and line positions exist in the organization?
- Is this a flat or tall organization? How many levels does it have?
The question belongs to Management and it discusses about drawing an organizational chart depicting the organizational structure and positions created and the positions’ widest span of control, etc.
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