Question
When structuring the organization for market responsiveness, leaders have four general issues to consider. These issues each have advantages and disadvantages. When considering centralization versus
When structuring the organization for market responsiveness, leaders have four general issues to consider. These issues each have advantages and disadvantages. When considering centralization versus decentralization, organizations must consider whether top management should retain greater control.
Select which option is best illustrated by each organization.
1. App-el Games: Programmers at App-el Games monitor online gamer communities for fresh ideas. If they find a great idea, they start work on it immediately to be first to market.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
2. BigAir Boards: Because each department chooses its own parts suppliers, BigAir Boards often experiences delays in getting snowboards from the plants to the stores.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
3. CCI: At CustomerComputer Inc., all orders for custom-designed systems must be approved by the manager, so it can take weeks for customers to receive their new systems.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
4. Harvey's: Whether or not customers at Harvey's department store get refunds depends on which clerks help them.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
5. Motown Motors: Because they have little input on company matters, employees at a satellite location of Motown Motors are unmotivated and feel disconnected from corporate headquarters.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
6. Mr. Burger: Mr. Burger is able to move customers through quickly during busy hours due to strong management oversight.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
7. ProTool: Senior management at ProTool tightly controls quality to avoid defects.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
8. Ritz Hotels: Employees at Ritz Hotels are authorized to spend, without permission, as much as $2,000 to resolve customer problems quickly.
- Advantage of a centralized structure
- Disadvantage of a centralized structure
- Advantage of a decentralized structure
- Disadvantage of a decentralized structure
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