Background:

The MUNSON is structured with Jane Wagner as the owner and general manager. She currently has a span of management of ten people; (six sales representatives, one bookkeeper/office manager, and three plant managers).

The company has three plants and they are located 30 miles apart, one on the east side of town, one on the north side, and one on the south side of town. The plant manager on the east side has a span of management of 16, the plant manager on the north side has a span of management of 18, and the south plant manager has a span of 7.

All sales representatives currently report directly to Ms. Wagner .

Ms. Wagner's large span of management requires a lot of time and prevents her from doing other activities such as strategic planning. Business has not been healthy during the last two years and Ms. Wagner will close the south plant and lay off all workers of that plant including the two sales rep. She will reduce her span of management to no more than three.

Instructions: You will be submitting three charts.

1. Draw an organizational chart to represent the current structure of The MUNSON Company. Rather than drawing the large number of direct reports, i.e.15 subordinates, you can draw one box and label it 15 S.

2. Next, redesign the structure to reduce the span of management for Ms. Wagner to three. You will create two charts representing the redesign. There are many possibilities for these next two new charts. Select two different methods of departmentalization for the organization. Draw an organizational chart to reflect each new design. You may add new positions, add appropriate new employees, and/or promote current employees.

3. Identify the type of departmentalization you used for each of the two new redesigned organizational charts.