What are your answers to these Management Concerns?

1. As a member of the management advisory service division of a certified public accounting firm, you visit a client's office and find the following situation:
Mr. Gonzalez is President and also Sales Manager of the company. Mr. Kern is Vice-President in Charge of Purchasing — he also prepares weekly production schedules and maintains inventories of materials and work in process. Mr. Troop is the Assistant Purchasing Agent; Miss Clark is Vice-President in Charge of Sales ; and Mr. Graham, the Product Engineer, is responsible for design and engineering development. The accounting department and general office are under the supervision of Mr. Hanna who reports directly to the President. Office help consists of two full-time and one part-time bookkeeper, one typist, and one clerk. The company's factory is divided into four producing departments employing about 175 workers. The president requests
(a) An organization chart.
(b) An opinion regarding certain duties that apparently have not been sufficiently delegated.
(c) A report as to additional information needed to prepare a more satisfactory organization chart.

2. The number of factory workers mentioned in discussion question 13 indicates that this company falls into the category of "small business."
(a) Would the consultant's answer be different if he were told that the company employs 2,000 factory workers ?
(b) What additional managerial positions might have to be set up ?
(c) In what manner would the accounting department and general office have to be reorganized ?

 

3. The management of the Kringle Company, interested in an improved organization, created a Control Division with a controller as its chief executive.

As one of his first steps the controller prepared the organization chart shown below and invited staff" members to comment on the chart with respect to (a) organization; (b) possible improvements; (c) a new chart.