Additional Case 2.1
Benson Manufacturing is a young, small firm that makes computer components and
peripherals for assemblers like Dell and Gateway. Benson’s market share is highly
volatile based on the entrance and exit of competitors into the market. Benson buys raw
materials from several suppliers who also supply competitors. The firm has two layers
of management between the CEO and the component maker on the line.
The firm’s CEO read a book about innovation and organizational change and now wants
to look at what HR should do about reorganizing and changing staffing practices. The
CEO wants to reduce costs in order to increase profit margins because he believes that
margins will continue to shrink.
While productivity and quality are largely functions of the machines used in the
process, the CEO still wants to focus on motivating Benson employees. He wants to
motivate them by increasing wages through a bonus program, improving working
conditions, and providing job security.
Refer to Additional Case 2.1. Which type of organizational structure would be most
appropriate for Benson?
A) Bureaucratic structure
B) Boundaryless structure
C) Flat organizational structure
D) Pyramid organizational structure
Elizabeth is a 59-year-old account representative at a large bank. Due to the increasing
popularity of online banking, the bank has more employees than it needs. Recently, the
bank has offered early retirement to account representatives between the ages of 55 and
65 who have been with the company for a minimum of 15 years. Four employees,
including Elizabeth, meet these requirements. It is most likely that: