Chapter 3 Discussion Forum
Exercise 1
The purpose of this exercise is to stimulate thinking about the fact that there are several different ways to organize work. Each form of structure has certain advantages as well as disadvantages. The ‘best fit’ structure for an organization can be a key challenge for management.
Objective:
To stimulate thinking about the fact that there are several different ways to structure organizations.
Process: Read the scenario of Apple Orange Company. When you have finished, answer the questions that follow by applying concepts from Chapter 3.
The APPLE-ORANGE COMPANY
The Apple-Orange Company grows and markets apples and oranges in the southeasthern United States. Apple-Orange has been in the produce business for the past 50 years and has some of the finest land for growing these fruits. They have also been quite successful in marketing their products. Up until now, Apple-Orange has been a family business run by a now aging John Grave, whose father and uncle started the business. He has had his son Carl working his assistant since Carl returned from military service in Iraq.
Three major activities support the organization grow and market Apple-Orange’s products.
One group of employees and management work in the fields, handling the growing and harvesting of the apples and oranges.
Another group of employees and management work in research and development (R&D). This group is compromised largely of agricultural scientists who attempt to improve the varieties grown to increase crop yield.
The marketing group is handled by several sales personnel who call on wholesale and fruit distributors in the region. The sales staff is quite large and has been, like all other employees in this organization, very effective.
John and Carl have been managing Apple-Orange without many formal policies and procedures. The company has few set rules, procedures, and job descriptions. John believes that once people know their jobs, they should and would do it well.
However, Apple-Orange has grown fairly large and now John and Carl both believe that it is necessary to develop a more formal organization structure.
They have invited D. J. Blair, a noted management consultant, to help them. D. J. Has told them that they have basically, two choices. One is a functional organization structure and the second is a product –based organization structure.
Discussion to Questions
#1. How would you identify and describe the current structure of the company? what are the advantages of retaining the current structure? what are the disadvantages?
#2. Based on your knowledge, guesses, and common sense, do you believe it is possible to “mix apples and oranges” in this case? Explain. Would your choice of structure be functional or product-based? Why would you choose this structure for the case?
Discuss the advantages and disadvantages of each structure for Apple Orange Company.
#3. Objective : To encourage students to consider combining product-based and functional structures in the form of matrix as an extension of the structural alternatives provided in the above exercise.
Process – Question 2 above provided two alternative structural solutions to the dilemma faced by the Apple Orange Company. This exercise provides an opportunity to design a third structure for the company as a combination of the function and product-based structures in the form of a matrix.
3-1 Draw an organization chart which includes elements of the functional structure and the product-based structure in the form of a matrix. (post a scanned copy of your design)
3-2 What may be some advantages of a matrix structure solution to the dilemma faced by the Apple Orange Company?
3-3 What are the disadvantages of a matrix solution for Apple Orange Company?
3-4 What conditions usually have to be preset before an organization should adopt a matrix structure?
3-5 Identify specific organizations that you believe would be best suited for a matrix structure. Explain.
#4. Based on your analysis of various organization structures in this chapter, identify and explain which structure you recommend for Apple-Orange Company.
#5. Answer Discussion Questions 9 and 10 at the end of chapter 3 in your textbook.
9. Why do companies using a horizontal structure have cultures that emphasize openness, employee empowerment, and responsibility? What do you think a manager’s job would be like in a horizontally organized company?
10. How is structure related to the organization’s need for efficiency versus its need for learning and innovation? How can managers tell if structure is out of alignment with the organization’s needs?
Textbook: Draft, R. L., & Armstrong, A. (2015). Organizational Theory & Design (3rd Canadian ed.). Toronto, ON: Nelson Education Ltd.
