Practise IB Business Management HL 2.2.3 by evaluating organizational structures through specialization, communication, control, and changing external conditions.
Alejandra reorganized LadyA Management Limited by appointing a Managing Director and a Human Resources Manager to assist in workforce planning and manage the rest of the business. She delegated some business functions, kept a close interest through meetings with the Managing Director, and introduced clear roles, systems and procedures; employees complained less. LadyA’s Malaysian manufacturer used batch production for perfume and cosmetics, but quality control could be a problem. Primary and secondary market research had shown that perfume and cosmetics connected well with LadyA’s established brand and target market of teenage girls and young women. Primary research could include focus groups or surveys to collect new opinions; secondary research could use existing market and demographic data.
Using the information provided, explain two possible relevant effects, other than "employees complained less", of changing the organizational structure.
Possible effects of changing the organizational structure:
- Better decisions for the business can be made as the Managing Director and Human Resources Manager are specialized in their roles.
- Less employees to manage allows Alejandra time to concentrate on the work that she is involved with and hence carry out her work better.
- Delegating some business functions could make employees/staff feel empowered and hence more motivated.
- Alejandra could feel less in control as she is not managing the majority of staff herself.
Mark as 2+2.
Award [1] for each appropriate effect identified and [1] for an appropriate explanation in context of the case study. Award up to [2] for each effect.
Context is likely to come from raising issues such as:
- previous poor communication
- change to limited company
- change of leadership style
- creation of new roles, such as Human Resources Manager.