Explain the term delegation

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Reference no: EM132262035

The Overworked Manager

Mrs. Bosch is the manager of a medium enterprise with a total of 120 employees manufacturing grapefruit juice. To cut costs, the company is also involved in grapefruit production with a 100-acre farm. The business was passed down from Mrs. Bosch’s parents when they retired. After a few years, Mrs. Bosch started to realize that she too needed to slow down and delegate some of her responsibilities. She is now giving the idea some thought.

Prior to this point, Mrs. Bosch was the sole manager of both the farm and the processing plant. She had to supervise all 120 employees, control the finances of the firm, hire and dismiss workers, promote her grapefruit juice, and take orders from large customers.

This lifestyle was never sustainable in the long term. While feeling as though she will be shirking the responsibility that was given to her by her parents, Mrs. Bosch has decided to reorganize the firm. Some of the moves that she is thinking of include appointing a manger of the farm, finance, production at the factory, marketing and human resources. She would continue being the general manager and employees would be formally placed into the different departments. This, she believes, would lessen the burden on her and give others an opportunity to show their prowess and bring in new ideas.

1. How would you describe the span of control of the business prior to the intended changes?

2. Based on the information provided in the case, draw an organizational chart showing what the new structure of the business will be after the change.

3. Explain the term ‘delegation’.

4. Outline three (3) benefits and two (2) drawbacks to delegation in the firm.

5. Explain how the firm could benefit from using a ‘centralized structure’ as opposed to a ‘decentralized structure’.

Reference no: EM132262035

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