Question 3 [27] Read the case study and answer the questions that follow: CASE STUDY REPORTING FIASCO Haibo Company is managed by a Managing Director who is the owner and executive manager. The company was established in 2010 with three employees (directors), and has grown rapidly into a company with 34 employees. The MD had to develop an organisational structure to indicate which functions were required. He decided on IT, Finance and Marketing as the primary functions (directorates of the company. For each of these directorates, the MD appointed a manager. The managers and the MD decide on the functions of each directorate for the company to achieve its goals. Guided by what needs to be done, posts were identified with job titles and job descriptions. These posts were filled with appropriate qualified staff. As responsibilities have grown, more staff have been appointed. Although the company's growth is an achievement, it experienced problems with the reporting lines of staff. Some staff in the directorates refused to report to the director of their function and responsibilities as they did not like her style of management. The result was chaos in reporting and achieving the goals of the company. The MD appointed an independent consultant to assist the company with reporting relationships. The consultant must provide a well-informed argument for a workable reporting relationship. Source: Dr L Naude You are the consultant assisting Haibo Company with their reporting relationship problem. Base your advice on the information in the textbook (Erasmus et al.) on reporting. Remember to use your own words to provide advice. 3.1.1 Explain to the MD the steps to be taken to establish clear reporting lines. Take into consideration: What must be considered when establishing reporting lines (12) What must be considered when establishing a suitable organisational structure (8) 3.2 Use a diagram to illustrate how reporting lines will link the staff to the responsible director and MD within a flat organisational structure. (7) : Del