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Organizational Structure Peer Review - Betty's Baby Boutique

I would like to compare my answers with yours. Thanks.

1. Is the organizational structure appropriate for the business selected? Explain.
2. Do other structural elements, such as work specialization and span of control, seem appropriate for the business selected? Why or why not?
3. Does your classmate's business use a mechanistic or organic model?
4. Would you like to work at your classmate's company? Why or why not?

Betty's Baby Boutique

Structure (Simple, Bureaucracy, etc.)
Simple Structure - Owner and Manager are one and the same.

Number of Employees

Work Specialization
Five salespeople and one cashier. I would want the cashier to be able to do sales and the sales people able to do cashier work as well. Salespeople stock shelves, help customers, and keep displays tidy. In other words, very little specialization - Employees should be able to cover for each other so they can all have flexible schedules.

I want little departmentalization. There could be some divison along product lines - perhaps age groups. Ideally, I'd like all salespeople comfortable with all of the products.

Chain of Command
All employees report directlly to me.

Span of Control
As long as the company remains small, one manager is more efficient. (Wide span)

Centralization and Decentralization
I make all the decisions, but I expect input from each salesperson as to how the products are received by the customers. Do some customers like a product but object on price? What are some common customer concerns? Things like that.

I want a low degree of formalization. I want the customers treated well, of course, but I want to salespeople to feel free to use any approach that they wish. I don't want a lot of rules or strictly defined procedures. They should sense a great degree of freedom and discretion in their work.
I would be looking for female salespeople that have small children themselves. I would hope that by offering a flexible schedule and a great degree of discretion and freedom in the performance of their jobs, that they would be happy to work there and get along well with their co-workers. I would think that by valuing their feedback, that they would be able to offer useful insight into the minds of the customer which would usually be women like themselves, I would think

Solution Preview

1. Is the organizational structure appropriate for the business selected? Explain

Yes, the type of organizational structure selected for this small firm is appropriate as it provides for lot of flexibility, efficiency and economy for a small business. Further, the flexibility provided to the employees in terms of tasks and duties, work schedule,etc. leads to better efficiency in this small setting.

I would avoid any sort of departmentalization or bureaucracy in this small business. I will try to implement a participative management style in this structure and would like the owner/ manager to work closely ...

Solution Summary

Is the organizational structure appropriate for the business selected? Explain.