Bagby Copy Company’s Trade-Offs and Decisions

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The trade-offs that Bagby Copy Company faces in choosing between specialized and broad task assignment

If Bagby decides to take on the specialized task, he has to trade off the probability of learning new skills in carrying out the broad task assignment. Bagby will also lose the income involved in carrying out the general task. However, if he decides to carry out the general task he will have traded off the benefit of working as a specialist such as, getting a better understanding in his field of specialization. The opportunity cost of taking on the specialized task is the general task and vice versa (Brickley, Smith, & Zimmerman, 2009).

The trade-offs between these two methods of grouping wire harness makers into subgroups

There are 2 methods of grouping wire harness makers. When the groups are put under one harness department, the firm will have experienced a trade off in the benefits of putting the groups under managers responsible for specific type of a copier: In this case, the employees will be answerable to the same manager who is responsible for overseeing the quality of specific types of copiers. The firm will have to trade off the advantages of maintaining the superior quality of the product, as the supervisors will have a wider span of control (Brickley et al., 2009).

The cost that was to be saved in maintaining the same employee on two jobs will know be incurred. Besides, the manager would have taken more time in the supervision and carrying out all duties. As a result, the choice of putting the groups under the harness department saves time that should have been wasted in the ignored method. The firm will have a poor functional expertise development; this is due to the method of administration used. The reverse would happen in case the firm will adopt putting the groups of employees under managers responsible for specific types of copiers (Gareth & Jennifer, 2008).

Trade-offs in choosing among the country, product, and matrix forms of organizing its international operations

If the firm chooses country forms of organizing its international form, the firm will have to trade off the benefits of using the product form. This assigns payment to the managers on the piece rate model, and ensures that the employees are more productive in terms of performance. The firm will also trade off on the benefits of a decentralized authority system. This ensures that operational decisions are done by employees at the operational level (Gareth & Jennifer, 2008).

The firm may have to trade off the benefits of a matrix form if, the country form is to be adopted. The firm will have to trade of the benefits of using the strengths directly with the product departmental structure, in improving the performance of the company. The systematic utility of the firm resources in achieving stability in predefined strategies will not be achievable due to restrictions (Moris, 2003).

However, the firm may decide on the use of the matrix method. It will then decide to trade off the benefit of using the country international operation structure. In this case, the firm trades off the use of a number of managers in each country in a certain continent to run its operations. The firm will have to change its product management techniques, by trading off on the use of more managers to run the firms internationally. This necessitates a lot of expenditure on the coordination activities in preparing the budget of the firm. This may be solved through the application of the matrix method.

Reference

Brickley, J., Smith, C., & Zimmerman, J. (2009). Managerial economics and organizational architecture. New York: McGraw Hill/Irwin.

Gareth, R.J & Jennifer, M.G. (2008). Contemporary Management. New York. McGRAW Hill International Edition.

Moris, A. D. (2003). Macroeconomics for MBA and Masters of Finance. New Jersey. Prentice Hall Publishers.

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