CASE BAGBY COPY COMPANY
1. Discuss the tradeoffs that Bagby faces in choosing between specialized and broad task assignment.· Bagby Copy Company manufactures 10 different copiers. The main part of these copiers is a wiring bundle. This device is plugged into various components during the assembly process.· They can assign each major task in this process to different employees using a broad task assignment or one individual can be assigned the task of producing the completed bundle using a specialized task assignment.Some of the advantages that Bagby's managers will obtain if they divide the total task of the manufacturing process into specific jobs or tasks are:Exploiting comparative advantage: Specialized task assignments will permit managers at Bagby to match people with jobs based on skills and training so this will permit employees concentrate on their particular specialties. For example, Bagby can hire engineers to design and develop a product and business people to do the marketing. The principle of comparative advantage suggest that this specialization will often produce higher output than using individuals to perform a broad tasks.Lower cost-training expenses: With specialized t
Bagby Copy Company has the following alternatives:1. From an incentive point of view, it is sometimes better to have employees concentrate on a narrow set of tasks, while in other circumstances, a broad set of tasks is preferred, it depends on the business activity. In summary, to keep an organization responsive to changes in its task and general environments, as the organizations grows and becomes more complex, managers must increase coordination among functions and product units by using complex integrating mechanisms. Bagby's managers will also need to coordinate procedures between functional and product basis groups. There can be significant, time-consuming coordination problems across departments. Facts:In either case, there are a group of employees that are assigned individual tasks to produce a wire harness for a particular copier (broad task assignment), so there is 10 subgroups of wire harness makers. Such flexibility speeds response to competitive conditions, technological break-through and other environmental changes. · Face uncertainties that generate high information processing requirements. Discussion:With the first alternative, Bagby will have 50 managers, too many people to take decisions. Specialized task assignment allows Bagby's managers to hire one engineer and one person without an advanced degree. Employees sometimes concentrate on their function specialties rather than in the process of satisfying consumers. · Create a matrix organization, organized around product and country. Matrix organizations achieve the desired balance by superimposing a horizontal structure of authority, influence, and communication on the vertical structure. Discussion:If Bagby decided to place all 10 groups in one harness department this will lower the communication and coordination costs because members will report to the same manger. There is a tradeoff between the benefits that come from grouping people together and the cost of coordinating their activities with other subunits.
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