Subjective Part

Case Study

Q1. Read the below case carefully and answer the given questions. Each answer should not be more than 250 words.

Elizabeth Woolley is the president of a barbecue sauce manufacturer in Austin, Texas. A manager in production has come up with a new barbecue recipe that he claims will be the best on the market because it's hot and spicy and has a flavor that the competition cannot match. Woolley has recently received new marketing research information. The research indicates that most Europeans prefer a hot and spicy barbecue sauce. The marketing manager is excited about this new product and believes it can be exported to Europe. Woolley has just come out of a meeting with her four managers from production, marketing, finance, and human resources. They have decided to establish a sales office for the barbeque sauce in Paris, France. The plan is to create a project team to set up a production facility within a year in France. The marketing manager will head this project team. He has requested that this subsidiary be decentralized to provide him with an opportunity to make timely decisions in this local market. Because of this expansion, Woolley is planning to increase her existing workplace of 120 employees by 20 percent. She has recently hired a human resource manager to take charge of the (recruiting and selection function. A rumor circulating around the plant through the "grapevine" hints that employees may attempt to bring in a union. The human resource manager is alarmed because of his position on the organization chart. His position is listed as a support position; thus, he can only advise and make recommendations to line manager concerning issues related recruiting and selection.

1. In your opinion has Elizabeth Woolleys organization is following an organizational structure? If so, identify the type ofthe structural design? (5 Marks)

2 Why do you think marketing manager request decentralization of authority in Paris, France? What could be the possible advantages of decentralization in this case? (5 Marks)

3. Does this organization reflect a clear division of roles and job specialization? Justify your answer (5 Marks)

SUBJECT: Organizational Theory and Design