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The organization chart of Ford's manufacturing company shows that there is a Vice-President of Manufacturing, Vice-President of Accounting and Finance, and a Vice-President of Marketing; they all report to the President. After jobs have been specialized and departmentalized, the company establishes its decision-making hierarchies. William King, a business consultant, has recommended that Ford's Manufacturing be reorganized into a divisional organization.
a. Is Ford's Manufacturing a centralized or decentralized organization before reorganization? What are three factors that may impact the span of control? Describe the span of control likely to prevail in this company.
b. How might the organizational chart differ after the reorganization? What benefits can be expected from a functional organization? If you were William, how would you advise Ford's Manufacturing about the best organizational structure for the company? Why?
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