SITUATION
In one small firm, the owner-manager and his management team use various methods to delegate decision making to employees at the operating level. New employees are trained thoroughly when they begin, but no supervisor monitors their work closely once they have learned their duties. Of course, help is available as needed, but no one is there on an hour-to-hour basis to make sure that employees are functioning as needed and that they are avoiding mistakes.
Occasionally, all managers and supervisors leave for a day-long meeting and allow the operating employees to run the business by themselves. Job assignments are defined rather loosely. Management expects employees to assume responsibility and to take necessary action whenever they see that something needs to be done. When employees ask for direction, they are sometimes simply told to solve the problem in whatever way they think best
Question 1 Is such a loosely organized firm likely to be as effective as a firm that defines jobs more precisely and monitors performance more closely? What are the advantages and the limitations of the managerial style described above?
Question 2 How might such managerial methods affect morale?
Question 3 Would you like to work for this company? Why or why not?