buad - organizational structure homework

buad - organizational structure homework - Keya Agarwal...

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Keya Agarwal BUAD 304 – Leading Organizations (Discussion session: 14752) Professor Coombs and Tolan Ch. 15 - Case Incident 1: Can a structure be too flat? 1. As we can see in the case study, as Nucor continues growing itss becoming harder to maintain the simple structure, as it becomes more and more inadequate. The low formalization and high concentration create an excess of information at the top, since all the decision making is done by one person, the owner. This also leads to the decisions being made at a slower rate, and decision-making can even come to a halt. This can cause the firm to lose momentum and eventually collapse. Its risky as one person is making all the decisions, and the organization is dependent on just Dan DiMicco. Hence if anything were to happen to him, such as falling ill, the organization’s information and decisions making center is ruined. 2. If a firm were to replicate an organizational structure like Nucor’s, they would experience all the strengths and weaknesses of the simple organizational structure. One of the advantages associate with this structure is that all the resources of the organization will be focused, and this is especially helpful in times of trouble, which is why companies that are large revert back to this structure from time to time. Another beneficial characteristic is the simplicity of the management structure, which can be easier to work with, as it is less bureaucratic and confusing. Hence, large companies with complex organizational structure may use this structure in order to simplify matters. is overly complex. Furthermore, this structure can cut corporate overheads greatly, which is beneficial to a company especially if all the layers of management are not necessary or required. In the case of a large organization however, although a simple structure would
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This note was uploaded on 04/03/2012 for the course BUAD 304 taught by Professor Cummings during the Fall '07 term at USC.

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buad - organizational structure homework - Keya Agarwal...

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