Reference no: EM132299509
1. Organization Structure and Design: Skill-Building Exercise
Exercise Overview
Diagnostic skills enable a manager to visualize the most appropriate response to a situation. Communication skills refer to the manager’s abilities to both effectively convey ideas and information to others and effectively receive ideas and information from others. In this exercise, you’re asked to apply your diagnostic skills to the question of centralization versus decentralization in an organization. You are also asked about communication issues as they relate to the decision to move between centralization and decentralization.
Exercise Background
Managers sometimes find it necessary to change an organization’s degree of centralization or decentralization. Begin this exercise by reflecting on two very different scenarios in which this issue has arisen:
Scenario A. You’re the top manager in a large organization with a long, successful history of centralized operations. For valid reasons beyond the scope of this exercise, however, you’ve decided to make the firm much more decentralized.
Scenario B. Assume the exact opposite of the situation in Scenario A: You still occupy the top spot in your firm, which has long been decentralized, but have made the decision to centralize operations.
Use your diagnostic and communication skills to answer the following questions.
In the past you’ve required your marketing department to use a standard marketing program in all markets you serve. However, you have just informed them that they can modify and adapt the standard program to better fit unique factors in each market you compete in. Does this reflect a move to more centralization or decentralization?
A. Centralization
B. Decentralization
Suppose you adopt scenario B and have decided to become more centralized. Which of these steps might lead to more centralization? Check all that apply.
A. Increase the autonomy of your managers
B. Eliminate levels of management
C. Create more rules and policies
D. Adopt standard operating procedures
In scenario B, having made the decision to centralize, which of these might be the best first step?
A. Start by informing all lower-level employees.
B. Meet with your top managers and explain both the rationale for and approach to the change.
C. Announce the change to major media outlets, and let your employees read about the change in the newspaper.
D. Send an email to everyone in the company telling them about the change.