Circumstance 3 Continental Can Firm of Canada, Ltd.
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The case permits an in-depth analysis of any mechanistic composition and allows students to make use of theorganizational theory concepts via Chapters 4, 5, and 6. It ought to be used following Chapter 6th, and the TRWSystems case should certainly follow (a two-class sequence) to demonstrate the workings ofВ an organic and natural matrixstructure. This kind of sequence exposes theВ meaning and significance of theВ mechanistic-organic distinction andprovides a good example of contingency theory. CCCВ is in aВ stable environment, uses a mass-productiontechnology, has straightforward tasks, andВ uses a mechanistic structure, when TRW isВ a high-tech firm, employs highly skilled people, functions an intensive technology in aВ dynamic, changing environment, and uses an organic structure. Students must not be asked to provide a written statement on this or perhaps theTRW case. These instances should be presented by the trainer to bringВ out interesting and valuableimplications and protect their very own teaching benefit. Continental Can easily Company of Canada, Ltd. (CCC) is all about a schedule mass-production corporation that isexperiencing conflict between the manufacturing and sales departments. В Manufacturing features all theВ power, and managers are compensated for minimizing costs and increasing efficiency. They have not any incentive to beresponsive to the needs in the salesВ department. Sales are decreasing somewhat and quality isВ going down. The issue is how toВ change the way the organization operates and improve it is effectiveness. Instructing Objectives
1 ) В To useВ organizationalВ theory concepts toВ analyzeВ an organization. installment payments on your В To showВ the designВ choicesВ that createВ a mechanistic structure. 3. В To linkВ organizationalВ designВ to theВ contingencyВ approach. 4. В To demonstrate aВ classicВ exampleВ of production-salesВ conflict. a few. В To demonstrate powerВ of a low cost in shaping expectations and behavior. Use this case following United Products, Inc. or Bennett's Machine Shop. It will require about an hour to investigate theissues and see howВ organizational structure operates. Put Quiz Concerns
1 . В WhatВ structureВ doesВ theВ St. LaurentВ plantВ use? Answer: Functional structure2. В What structure doesВ the Ls Can Company asВ a whole use? Solution: Geographic framework Issues and Discussion Inquiries
1 . В What kindsВ of organizational design choices has CHAOS COMPUTER CLUB made regarding the 4 design challengesdiscussed in Phase 4? 191
You will find six levels in theВ hierarchy, including shop floor staff, and five-hundred employees. ThisВ meansthat CCC provides a relatively high structure. Fox, the plantВ manager, has a duration ofВ control of 8 subordinates and Andrews, the assistant plant manager, has a course of control ofВ 15 subordinates (there happen to be three shifts). Is thisВ too big? No, subordinates are alldoing related, routine job, В and all of them are inВ manufacturing-related functions, so itВ is easy to monitorВ and evaluate activities. Is CCCВ centralized or decentralized? CCCВ is remarkably centralized: Fox and Andrews solve concerns atВ thetop. The info gives theВ impression that foremen have an increased levelВ of decision-making authority, and some students is going to argue that thisВ implies decentralization. The point is to lookВ at where importantВ or significant decisions are made
inside the hierarchy, and this is always bigger up in CCC. People reduced inthe pecking order handle only routine complications. CCCВ is tall and central. b.
Inside St . В Laurent plant, do they offer a highВ or a minimal level ofВ horizontal differentiationвЂ”division of laborВ and field of expertise? There are many different departments shown in Exhibit you, butВ all will be manufacturingВ orientedвЂ”В
no sales, research and development, or finance. There isВ a low level of horizontaldifferentiation; this can be a simple organization or aВ low level of complexness. What kind of structure can it be? A functional structure: The main function is manufacturing. CCC makes awide number of different kinds of cans; the otherВ functions are...