Organization Theory & Design

INFORMATION SYSTEM AT MRS. FIELDS’

COOKIES

SUMMARY
Mrs. Fields' Cookies has nearly five hundred stores ip thirty-seven states. In contrast to
many food retailers, Mrs. Fields' stores are not franchised operations. Rather, all the
stores are owned by Debbi and Randy Fields, and run out of their headquarters in Park
City, Utah, The secret to managing this widely dispersed operation is a computer system
that is "state of the art."
Mrs. Fields' specialty is fresh and warm chocolate chip cookies. But most of the
company's nearly 4500 store employees are young and inexperienced, and know little
about the cookie business. So Randy Fields has installed a computer-based information
system to do all these things for the store employees.

Each store manager begins his or her day by calling up the Day Planner program* on the
store computer. As the day progresses, sales data are entered in the computer hourly. The
program can then revise the hourly projections and offer suggestions on how to improve
sales. Of course, the individual store computers are linked to Park City, so Randy has almost
instant access to how things are going at every store.
This information system also does a number of other functions for store managers.
Based on sales projections, it schedules hourly crew needs for two weeks in advance. The
system even has a repair program that helps managers to pinpoint equipment problems.

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Organization Theory & Design

QUESTIONS:

1. Describe Mrs. Fields’ Cookie in terms of its complexity, formalization and

centralization.

Answer

Complexity:

• High complexity, the company is high on spatial differentiation; that is the

company is based on five hundred stores which are dispersed over thirty seven
different states and have head quarter in Park City, Utah.
• This distance between the stores and head quarters can cause communication
distortion, which may result in high complexity.
• But in this case it has been well maintained through a computer system which
helps owners of the company to keep records on activities in all stores.

Formalization:

• Formalization is high; managers in all the stores have minimum to no discretion

in handling the matters of store, the computer system decide to conduct
activities in all stores.
• The computer forecast sales of the day, selling techniques, staff requirement,
and employee management.

Centralization:

• Centralization is high; although the size of company is increase but the

computer system has enable the owners to ensure tight control in all the stores.
• Managers of stores have to follow the already defined conditions. All the
decisions are taken by the system which has been programmed in advance.

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Organization Theory & Design

2. Do management information systems, such as the one at Mrs. Fields, alter the
conclusion that large size leads to increased vertical differentiation, formation
and decentralization? Discuss.

Answer

• In general, large size causes increase in hierarchical levels, which increase

formalization and decentralization.
• But in this case the management information system has been designed in a way
that’s allow the owner to maintain tight centralized control while the
management hierarchy of the company is almost flat to store managers, because
decisions are taken by the computer, there was no vertical differentiation.
• Formalization increase with the size, the computer sets rules, procedures and
policies and also define activities that manager have to perform.

3. Are computerized information system part if an organization’s technology?

Explain

Answer

• Technology refers to the information, equipment, techniques, and processes

required to transform inputs into outputs in the organization, that is how inputs
are transformed into outputs
• The system may be considered as technology in a way that it is use to supports
decision about the daily activities and future tricks use in stores which are
eventually use to transform input into output . It does not transform the actual
selling product into output but it helps in making decisions about it.

4. “This system leads to better store-level decisions”. Do u agree or disagree?

Answer

• Agree; Mrs. Fields’ specialty is fresh and warm chocolate chip cookies. But
most of the company’s nearly 4500 store employees are young and inexperience
and know little about cookie business, in such case this system can lead to better
store decisions and efficiency, as it define all the activities from cookie receipt
to sales forecast and technique which could be very helpful for the unskilled
workers they have.

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Organization Theory & Design

5. What negative store-level repercussion might result from this system?

Answer

• Mechanical work, employees have to repeat the routine activities suggested by

computer.
• The work may not motivate employees, as they have no discretion in any of
action and have to follow what computer suggests
• Since it’s a computer system, wrong input from employees can lead to wrong
future forecast and procedures.
• The system may not be able to deal with novel and unexpected problems which
have not been programmed in it and required creative solution.
• It case the system crash, it can stop the entire proceedings of company.

6. Explain the potential impact of computerized information systems from the

power control perspective.

Answer

• Power control perspective means that the upper level of hierarchy wanted to
maintain their control over the organization and oppose decentralization which
may threaten their power.
• In this case, the power is mainly maintained by the computer system, which
takes decision about the activities, however, these computer system are design
and programmed by those in top management (owners), so employee may not
blame the top management directly for the unwanted enforcement of decisions.
But the authority is eventually retained by those on top positions.

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Organization Theory & Design

MANAGERIAL IMPLICATIONS

First thing that could be learn from this case that computer system could be an effective
way to manage things specially when the organization is dispersed geographically,
because it allow easy access to activities in all parts, but it should not be consider the only
way to contact employees.

It has Mechanical work; employees have to repeat the routine activities suggested by
computer. It may be good for employees who do not have much experience about the
work but it may also make employees obsessed with technology and may not allow them
to make decision in situation where computer is not programmed.

The work may not motivate employees, as they have no discretion in any of action and
have to follow what computer suggests, there must be some discretion on employees side
the tight control from management may de motivate employees and can result in bad
performance and high turnover. Moreover, complete reliance on computer can be
unbeneficial come times because if employees enter wrong input it may cause make
computer suggest wrong action, so management train its employees in a way that they
could understand problems as they arise when computer do not provide accurate
information.

While using such systems management must also keep in mind the problem which may
arise in situation for which computer is not programmed or if the system crashes , so
complete dependence on computer for management can not be profitable all the time,

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Organization Theory & Design

SEARS TRIES TO STOP ITS MARKET-SHARE

SLIDE

SUMMARY:

This case is on Sears which was one of the premier retailer in the US, but in the 1940’s
sears management saw a growth opportunity in the suburb and they without waiting open
stores because of heavy parking there provided to the customers, this move increased
their sales and profit. The company ran into problems after several decades in 1980,
because it had lost its number one position in retailing to Kmart with Wal-Mart which
was in third position quickly covering the gap.

The main reason was due to the operating expenses and distribution cost which were
touching the sky in comparison to Kmart and Wal-Mart. Due to this they can’t offer
competitive prices to their customers. Not only there sales were affected but also their
market share which decrease from 18% to 13%. Along with this a high number of outlet
and people in them look towards the top management because they didn’t have any
authority in their hand; not only this but along with this the coordination and control
problem was so high that one of their store in New Jersey was still showing old jewelry
and clothes on dummies. Due to this Sear in late 1988 announce to sell their sear tower
which is located in Chicago, Illinois. Another problem was that their consumer started to
project where Sear is in the retail hierarchy. A step taken by Sears to improve their
reputation was by calling themselves as a fashion store but this didn’t help them in any
way.

It took another step in 1989, which was of everyday low pricing, through this they
thought they can reduce their administrative cost and will be able to compete directly
with the discounters. The huge market share enjoyed by sear has led its employees
becoming incompetent, inefficient and indifferent to the changing needs of their
customers. Sears senior executive has been trying to change their attitude, though when
questioned they deny facing any problem.

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Organization Theory & Design

QUESTIONS:

1. Describe how sears original strategy influenced its structure.

Answer

Strategy:
• Sears original strategy was defender, it built its reputation on a strategy as
offering high-quality, moderate priced merchandise, merchandise sold under its
own private label, offer hundred of different items each week on sale.
• Seek stability by producing only a limited set of products directed at narrow
segment of total potential mark, no scanning of new environment.
• Any thing new was seen as threatening and therefore, resisted.
• Strives aggressively to prevent competitors entering their turf, company
manager believe that they will be able to become low-cost operator by dropping
hundreds of styles and models and by ending the huge promotional expenses
associated with planning, buying, storing, distributing and advertising the on
going sales.

Structure:

• This strategy enforce high centralized decision making.

• Elaborate formal hierarchy for communication and work increase differentiation
and coordination problem.

2. Do you think its exchange in strategy in 1989 should have lead to changes in
structure?

Answer

• In 1989, Sears proposed to pursue a strategy of “every day low pricing

represented “Analyzer Strategy”.
• Prices of all the goods were sharply and permanently cut and deep discount
promotions were eliminated, management try to make it low cost operator by
dropping hundreds of styles and models and by ending the huge promotional
expense associated with planning, buying, storing, distributing and advertising
the on going sale goods
• Moreover, it used other name brands along with its own private label, seek both
flexibility and stability.
• But instead, they adopted reactor strategy, the managers were to lazy to adopt
changes and miles away from the customer needs
• Top management failed to make the organization strategy clear
• Management does not have fully shaped organization’s structure to fit the
chosen strategy

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Organization Theory & Design

• Management have maintained its current strategy –structure relationship despite

overwhelming changes in environmental conditions

3. How has size influenced sears structure?

Answer

• As size increases, it increases complexity in terms of horizontal and vertical

differentiation, which increases communication distortion.
• It had coordination and control problem that means formalization was not
efficiently managed to reduce confusion of employees as size increases.
• Centralization remained high, though the size was increasing which require
decentralization, and block the flexibility of employees working.

4. K-mart is almost the same size as Sears but is more effective. What structural
factors do you think might contribute to k-mart being more effective than Sears

Answer

• K-mart manages to maintain low cost while providing superior selection of

goods.
• K-mark might be using focus strategy, which may involve more decentralized
decision making and flexibility and high customer satisfaction unlike Sears
• Values and rewards flexibility and customer intimacy
• Measures cost of providing service and maintaining customer loyalty
• Pushes empowerment to employees with customer contact

5. Is sears mature or declining firm?

Answer:

• It is at the end of its maturity period and heading towards declining

• It is losing its market share, shifts out of alignment form environment
• Declining cause of atrophy, organization took success for granted and becomes
attached to practices and structure that worked in the past and fails to adapt to
changes in the environment
• It tried many different strategies but could not been able to deal with problems,
it may be at crisis stage
• The social fabric of organization is eroding; dramatic action such as replacing
top administrators, revolutionary changes in the structure, strategy, and culture
is required.

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Organization Theory & Design

6. What problems does Sears face that Wal-mart and k-mark don’t?

Answer

• The coordination and control problem among departments

• Highly centralized structure causing difficulty in meeting the needs of customers
to their satisfaction.
• High operating costs
• Switching to many strategies and failed to maintain structure according to strategy
• Arrogant staff
• Managers were slow to respond to change
• Any thing new seen as threatening
• Heading towards declining, cause of atrophy.

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Organization Theory & Design

FORD VERSUS THE GENERAL

SUMMARY:

In the U.S. automobile industry, Ford Motor Co. and General Motors have been giants for
more than sixty years. To understand the Ford structure, you have to go back to its
founder, Henry Ford. Division managers were relatively autonomous but headquarters
controlled operations through an extensive reporting system and through its power to
allocate financial resources. The system worked at culling out poorly reasoned or risky
decision options.
It controlled 48 percent of the U.S. market and was generating record-breaking profits.
Ford, on the other hand, had less than a 16 percent market share. Ford was also losing
money-—a whopping $3.26 billion between 1980 and 1982 alone. GM's market share had
fallen to 35 percent, whereas Ford saw its share increase to 22 percent.
Ford's problems in 1980 were many. Its cars were nondescript. This meant each Ford car
had to shoulder a larger percentage of fixed costs than did GM products and resulted in
significantly greater per-car profits for GM. Ford executives realized they had to take
some drastic actions if the company was to survive. What they did was introduce a broad-
based cost-cutting effort, initiate a massive program to change Ford's culture, put renewed
emphasis on listening to and working with the people who made Ford products, and
change the corporate strategy to become the styling leader among the U.S. "Big Three."

Ford became more efficient by cutting layers of management, getting employees more
involved in the production process, and cutting defects by focusing people's attention on
improving product quality. Management training particularly emphasized the need to
replace the company's autocratic management style with one of participation.
Encouraging its design staff to emulate the successes of European stylists, impressively
restyled cars began coming off the assembly line in late 1985. General Motors entered the
1980s in a much stronger position than Ford. Like Ford, GM had high costs and a bloated
organization. GM's management assumed that gas prices would rise and fuel shortages
would prevail throughout the 1980s, so smaller cars would be highly sought. GM bought and

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Organization Theory & Design

installed robots, lasers, and computers designed to step up efficiency, boost quality, and
make product and engineering changes faster than the old system could. Rather than focus
on product styling, it would generate huge economies of scale by building its cars out of
common parts. High technology and high volume would enable GM to make cars more
cheaply than anyone.
Fuel prices dropped and, with it, the demand for small cars. Consumers sought large cars,
which were being produced in large quantities by Ford and Chrysler. GM spent enough
money on capital investment to buy several of its major Japanese competitors, yet the
company lost market share. Ford and Chrysler, using competitive bidding, could buy parts
at a significantly cheaper price than GM. The net result was that between 1981 and 1987,
GM's breakeven point rose 30 percent.
GM executives, particularly in the middle-management ranks, resisted any changes.
Complacency ruled. Oldsmobile Calais and a $26,000 Cadillac Seville—and consumers
responded by snubbing GM products. No longer were they pursuing the strategy of
expanding market share. Rather, like Ford, they were concentrating on producing more
stylish and differentiated cars, and beginning to restructure the company so as to be able to
produce fewer cars more efficiently. In the last half of 1988, GM's profits increased smartly

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Organization Theory & Design

QUESTION

1. Using competing values, assess why ford is widely considered more effective than
GM. How could GM have uses the competing value approach in early 1980s to
recognize that it had problems?

Answer:

Competing values

• According to competing value Ford use the value of Human relation model
because they merge the value of internal focus and flexible structure.
• They put renewed emphasis on listening to and working with the people, who
made the ford product
• Became efficient by cutting layers of management, getting employees more
involved in production process.
• Employees are given opportunities for autonomy and development
• Management worked towards the sub goal of cohesion, morale and training
opportunity.

The criteria you value and use in assessing organization effectiveness depend on who you
are and the interest you represent. There is no best criterion for evaluating an
organization’s effectiveness.

In the early 1980

• At entrepreneurial stage GM used open system which was appropriate at infancy.

• But as they grew larger they focus on generating huge economies of scale rather
than focus on product style, at this stage human relation model should be use but
the strategy was not chosen effectively
• At formalization stage then they should more emphasis on rational or internal
process because they are heading towards maturity, in this stage evaluation of
company is done in terms of its stability and productivity.
• GM should instead of concentrating on expanding market share they should have
concentrate on producing cars effectively, by using labor effectively

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Organization Theory & Design

2. Contrast Ford and GM’s strategies. How has each affected their organization
structure?

Answer:

Ford:

• Until early 1980’s ford was using the defender and low cost leadership strategy,
this includes.
• A tight control and high on formalization, centralization, mass production was
done.
• The structure was more like simple structure in which strategic apex have
authority

General Motors:

• GM were using the analyzer, that is stable plus flexibility

• The structure was more like divisional structure
• They have division of department therefore, the manager has autonomy but
supervision is done by larger department in order to maintain stable and control
environment of organization.

3. How did GM technology affect its structure?

Answer:

• The effectiveness of GM is related to fit between technology and its structure.

• GM has used high technology with mass production, this was done to make cars
at cheaper rate and to gain market share, rather than focus on product style it
would generate large economies of scale
• GM had organic structure but the company needed mechanistic structure because
non routine technology can not work effectively with mass production
• The mismatch between technology used and structure has made GM fallen down
its expectations.

4. Assess both companies effectiveness in terms of their “environment structure” fit?

Answer:

Ford:

• Ford realized uncertainty in environment in terms of change in customer trends, to

deal with this.
• It changed its structure to organic structure from mechanistic structure

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Organization Theory & Design

• It developed more team participation and decentralization decision making.

General motors:

• GM had difference between structure and environment. Because

• Middle mangers resist changes.
• It was operating in a stable environment with mass production but still following
the divisional structure, as organic structure.

5. Are there any structural factors that can help to explain why Ford made more
money than GM in late 1980’s?

Answer:

• Yes,
• Ford realized changing consumer trends for which it take into consideration some
major changes in the structure and strategy of the firm
• It changed its structure from mechanistic to organic structure
• Which emphasis on decentralized decision making
• Work based on participation and team work
• Efficient scanning of environment, to determine changing trends and needs of
customers
• This increased participation of employees and their commitment towards the firm
and creativity.

6. Contrast these two organization approaches to managing change?

Answer:

Ford:
• Ford has successfully managed change by adopting strategies to deal with
resistance to change, this include
• It developed organic structure which allowed employees to participate
• Participation and support, increased employees commitment
• Participation also increased the quality of the decision taken as more input is
collected to analyze a situation.

General motors:

• GM could not cope up with the changing environment,

• Changes were resisted but employees were given autonomy, mismatch in strategy
and structure
• Top management used to announce any changes.

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Organization Theory & Design

7. Contrast GM and Ford culture in 1978 and 1988. What might GM have done in
1980 to reshape its culture and make it better fit its environment?

Answer:

Ford culture:

• Ford change it culture from autocratic to participative to deal with changing in

environment in 1980’s
• It renewed emphasis on listening to and working with people who make ford
products
• Changed corporate strategy to become style leader
• Participation was done by every one, managers and non-managers, to inceres
level of commitment, participation and creativity.

GM culture:

• It had traditional bound culture and internal system that was slow in reacting to
innovation. Its managers were cocky and unable to be self-critical.
• It had high technology, but rather than focus on product styling, it would generate
huge economies of scale by building its cars out of common parts

Culture change

• It should have follow its strategy of organic structure by allowing employees to

participate and which could increase the quality of input and increase
commitment and creativity
• It should have emphasis team work.
• Instead of producing mass product they must have consider style and requirement
of their customers to deal with changing environment
• Innovative employees should be rewarded and promoted.

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Organization Theory & Design

THE MERCK MAGIC

SUMMARY

This case is on Merck which is the king of the king of the pharmaceutical industry and
this is because of long term focus strong research department and a flexible organization
which gives its employees an incredible amount of freedom. They still believe in old way
of spending and waiting for these spending. Its because they know that once their product
hit the market it immediately become a success. The company’s long term focus on their
product has benefited Merck in every way it can in comparison to its competitor. Merck
is also efficient because of the freedom which they have given to the scientist. The
company find the best people and by given them freedom they motivate them to choose
their own way to complete a project. Merck follows an informal structure and a research
is divided into 12 different areas and each area has a leader which is there to motivate
them and make them work on his project. And this is the toughest work for the leader
because he requires their skills to complete this project.

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Organization Theory & Design

QUESTIONS

1. Do Wall Street analysts and Merck’s management evaluate Merck’s

effectiveness similarly?

Answer

The two define the effectiveness in different way as one

Wall Street:

• Wall street define it as goal approach, that they are achieved their, this is profit
they are getting in the end
• The major reason that Merck was rated so highly is that it’s in the highly
profitable pharmaceutical industry
• It generate considerably higher rate of equity than its industry rivals
• And its incredible growth potential made possible by number of new products

Merck’s management:

• Merck management define it effectiveness internal organizational health and

efficiency, that is internal process approach
• It owes its success largely to Merck management’s long-term focus
• Strong commitment to research and development
• Creation of a highly organized, informal and project based structure and allow
its researcher an incredible amount of freedom to control their destiny.

2. Describe Merck’s organization structure

Answer

Merck is following adhocracy in its structure.

High horizontal differentiation

• The structure define social differentiation

• They hire professionals, they seek for the best talent available
• This increases individual professionalism, hence, this increase horizontal
differentiation.

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Organization Theory & Design

Low vertical differentiation

• Many levels of administrators would restrict organizations ability to adopt

• The structure of Merck was designed to support and reward extensive risk-taking
• Need for supervision is less because professionals have internalized the
behavior management wants

Low formalization

• There are few rules and regulations, professionals are allowed to work freely,
and to take risk
• Since there is flexibility in structure, therefore, formalization is low and
scientist have autonomy to take risk and work to try new things

Decentralization

• The amount of collaboration required when the team leader is convincing each
one of the participants on a venture that is going to give return after several, this
his shows a decentralized structure
• Power flows to everyone irrespective of positions.
• Individuals are free to decide on an approach and carry it through and
underground projects are encouraged.

High flexibility and responsiveness

• The structure of Merck was designed to support and reward extensive risk-taking
and a project-based structure that encouraged Research and development. It was
flexible and organic.
• The risk taking has been at its maximum level, as developers have to utilize their
own resources.

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Organization Theory & Design

3. What key factors do you think have acted to create this structure?

Answer

Merck prides itself in the extraordinary freedom it provides its scientists and the informal,
project based structure it uses to develop new product, its long-term focus and strong
commitment define its structure to be based on innovation and creativity of it employees
(research and development). The strategy they must be using would be similar to:

Porter’s Competitive strategy: Differentiation

• Firm seeks to be unique in the industry in ways that are widely valued by the
buyers
• May emphasize high quality, extraordinary services, innovative design,
technological capability and positive brand image, Unlike other drug companies,
Merck spends its lion share not on defending existing products but by creating
future products.
• Acts in an organic, with strong coordination
• Rewards employee innovation
• Creative flair, thinks “ out of the box”

4. Describe Merck’s culture. what does Merck’s management do to sustain this

culture

Answer

Culture:

• The structure that Merck following define innovative culture, which emphasis on
organic structure
• its employees has strong commitment and a long term focus to perform their work
• the structure is highly flexible which allow R&D department to take risks
• creativity and rick taking is rewarded
• the in informal structure give autonomy to every one

Merck can sustain its existing culture:

• They should maintain the selection processes the way it is being done, in which
they select the best talent available to get the best outcome
• Maintain the same flexibility and risk taking approach, so that scientist can
experiment new ideas.
• Allowing its R&D to be innovative and creative

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Organization Theory & Design

• Providing autonomy to make them grow.

KEEPING THINGS ORGANIZED AT BEN &

JERRY’S

SUMMARY

This case is on an ice cream parlor which is Ben & Jerry’s and it was started by Ben and
Jerry in 1978 at a small gas station in Burlington Vermont. The initial goal of the
company was to sell ice cream just for fun, but just within no time they became so much
popular that now they were a $45 million dollars company. The main reason for this was
its unique culture which they followed and which was not moving on alone but to move
with everyone that’s in the company and even those which are affected by them, but as
the competition arose, it put stop to their rise. The company knew that in order to survive
they have to find new targets so that it can attract new customers. In order to achieve this
they wanted to establish a factory and for this they had made their friend and neighbor
stockholders of the company. He knew that in order to keep shareholders happy they
have to grow, but it wasn’t that easy because the culture and processes of Ben and Jerry’s
have changed. Everything which was once on organic basis is now turned into a
mechanistic culture. This created dissatisfaction among the employees due to which the
department started to copy the work of others. The situation is getting even worse
because all the reasons which worked in their favor at the start are now creating a barrier
for them to grow.

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Organization Theory & Design

Questions:

1. Has Ben and jerry’s been forced to grow? Explain

Answer

Ben and jerry’s were forced to grow because

• The market for super premium ice cream was maturing in the mid 1980’s and
there was new host of new competitor.
• The company had to grow to retain its position on super market shelves, there
market share was declining.
• Another factor was the decision in 1985, to take the company public and sell
stock in order to build a factory, so, now they have stockholders to worry about

2. This case demonstrates that organizations control people as much as or people

control organizations? Do you agree or disagree with this statement? Discuss.

Answer

3. Is Ben & Jerry’s original culture now hindering the organization’s effectiveness?

Answer
Original culture: its original culture is unique as:
• It emphasis on fun, charity and good will towards fellow workers up and
down the line.
• The company was genuinely sensitive to employees need
• They began as more than just a profit making venture, if wanted to act
force for social change
• They would rely on all employees to participate in decision making.

This culture was good with internal organization but as organization grow larger the
organization needed to be more rational and look towards the profit to sustain. They
wanted to continue the social aspect of organization, on the other hand they wanted to
grow for which more profit oriented and formal attitude was required and original culture
of organization hindering, which may not allow the formal control to takeover, for
example: the 5 to 1 salary ration was creating problem which made salary not competitive
to market. Moreover meeting did not remain effective; employees were no longer privy

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Organization Theory & Design

to every decision management made. This mixed strategy was huge block in their way to
growth

4. Can Ben and jerry’s maintain their original culture and, at the same time
continue to grow?

Answer

No. they can not grow with their original culture, the original culture is more towards the
social well being and for growth they need to make profit for which they required system
which is more formalized. Too much sensitivity towards employees may not allow them
to work rationally on making profits.

5. What type of structure Ben and Jerrys have in its early years? Today? What
factors brought about this change

Answer

Structure in early years

• They had organic structure.

• Informal communication and decentralized decision making
• Formalization was low
• Internal organization was free-flowing and adaptive.

Structure today

• Than it transform in much mechanistic structure

• Meetings were no longer no way communication but, rather one-way
affairs with management telling employees what was happening, define
clear hierarchy of authority, emerging centralized decision making.
• Structure became more impersonal
• Employees were no longer privy of every decision management made

Causes of change

• Causes for changes were

• Increase in size, which cause increase in complexity
• Demands for more mechanistic structure, and formalization to grow and
retain its market share

6. If you were a management consultant, what advice would u give Ben Cohen?

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Organization Theory & Design

THE UNITED STATES EMPLOYMENT SERVICE

SUMMARY

The service is jointly administered by the federal government and the states. operation of
the local Job Service offices within its jurisdiction. To get an idea of its impact, during
fiscal 1980, approximately 2600 local Job Service offices filled six million job openings.
The USES would like to match workers and jobs by computer. In the mid-1970s, the USES
developed what it called the Job Service Matching System. It was a nationwide system
that included locating computer-based batch processing of matches between applicants
and jobs in all large

metropolitan areas and real-time processing in selected large metropolitan areas. The
system would cost in excess of $250 million.
The consultants identified 28 USES offices in which to conduct their evaluation. Using the
eight factors from the competing values approach to organizational effectiveness, the
consultants measured participants' perceptions of their offices' performance. Each of the 28
local Job Service offices was assigned composite performance scale scores on the eight
effectiveness criteria. These were obtained from questionnaires administered to the entire
staff of each local office investigated. Figure 1 depicts a composite performance profile of
the two sets of Job Service offices—those with high use and those with low use.

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Organization Theory & Design

QUESTIONS

1. How are the high-use offices performing? What are their problems?

Answer

Offices performance:

• Primary emphasis is at well being of employees and at maintaining its position to

achieve goals effectively, they are internally efficient
• Moderate at maintaining moral and cohesion of human recourse.

Problem:

• Low at flexibility

2. How are the low- Use offices performing? What are their problems?

Answer

Office performance:

• They are moderately good at achieving flexibility

• Interaction with the environment
• And achieving the overall goals.

Problem

• Low at internal efficiency

3. What can u say in terms of comparing the effectiveness of these two sets of
office?

Answer

• The difference between the two office is mainly based on internal efficiency the
low Use office are low at internal efficiency that is they are poor at performing
internal operation

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Organization Theory & Design

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