Background: The MUNSON Company is structured with Jane Wagner as the owner and general manager. She currently has a span of management of ten people; (six sales representatives, one bookkeeper/office manager, and three plant managers).
The company has three plants and they are located 30 miles apart, one on the north side of town, one on the south side, and one on the west side of town. The plant manager on the north side has a span of management of 18, the plant manager on the south side has a span of management of 16, and the west plant manager has a span of 10.
All sales representatives currently report directly to Ms. Wagner even though two reps conduct sales for each of the three plants.
Ms. Wagner's large span of management requires a lot of time and prevents her from doing other activities such as strategic planning. Business has not been healthy during the last two years and Ms. Wagner will close the west plant and lay off all workers of that plant. She will also eliminate one sales rep. She will reduce her span of management to no more than three.
Instructions: You will be submitting three charts.
1. Draw an organizational chart to represent the current structure of The MUNSON Company. Rather than drawing the large number of direct reports, i.e.18 subordinates, you can draw one box and label it 18s.
2. Next, redesign the structure to reduce the span of management for Ms. Wagner to three. You will create two charts. There are many possibilities for these next two new charts. Select two different methods of departmentalization for the organization. Draw an organizational chart to reflect each new design. You may add new positions, add appropriate new employees, and/or promote current employees.
3. Identify the type of departmentalization you used for each of the two new redesigned organizational charts.