Chapter 13: Decision Rights: Bundling Tasks into Jobs and Subunits
JOG PCS
Discussion Question Answers:
1.
Note: All three divisions have the functional areas displayed for the High Volume User Division.
2. Pros: (1) More effective use of customer information; (2) reduces opportunity cost of using
top management time for operating issues; (3) reduces functional conflicts, improves functional
Cons: (1) Reduction in communication and coordination within functional specialties; (2) less
3. The organizational chart would maintain the functional areas of Product Development,
Marketing, Sales, and Customer Service. There would be three teams: Business Customer team,
Note: Teams are organized for each customer group. Each team has a member from each
4. Pros: Attempts to capture the benefits of both functional and customer-based organization.
CEO
Business to
Business
High
Volume
User
Low Volume
User Division
Product
Development
Marketing Sales Customer
Service
Cons: Overlapping lines of authority make for difficulties in designing performance evaluation
BAGBY COPY COMPANY
Discussion Question Answers:
1. This question can be used to discuss the basic benefits and costs of specialized task
assignment relative to broad task assignment. The benefits include exploiting comparative
advantage and lower cross-training expenses. The costs include lost complementarities across
2. Grouping employees into a wire-harness department will increase the coordination and
communication of employees producing wire harnesses. Economies of scale are likely to be
exploited. There is likely to be a well-defined promotion path for harness employees. A primary
3. Country grouping enhances the use of specific knowledge relevant to that country (about
customer tastes, local regulations, and so on). However, it comes at the costs of not having better
coordination and information sharing within a product line across country borders. Organizing