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Q1.Describe Mrs. Fields Cookies in terms of its complexity, formalization and centralization?

ANSWER:

Complexity refers to degree of differentiation that exists within an organization. This

differentiation can either be horizontal, vertical or even spatial.

HORIZONTAL DIFFERENITATION:

In this scenario store employees are young and inexperienced.

There is no specialization and departmentalization in the organization because most of the task

are performed by the computer information systems.

VERTICAL DIFFERCITATION:

this is a vertical differentiation because it is mentioned in the case

that managers hierarchy of the company feels almost flat to store managers, while the tight

management controls are managed.

SPATIAL DIFFERENTIATION:

there is spatial differentiation in the organization because since

Mrs. Fields cookies have nearly five hundred stores in thirty seven states. So in order to manage

this widely dispersed operation computer information systems have been installed.

CENTERALIZATION:

there is high centralization in the organization because each store

manager after consulting the day planner program makes decision and that day planner is

designed according to the needs of the business. The system set outs the goals, how many

customers will be needed each hour, how much the cookie mixture is to be made etc and passesthese decision to the store managers.

FORMALIZATION:

formalization would tend to be high because most of the

companies nearly 4500 stores employees are young and inexperienced, and know little about the

cookie business so to guide and lead these inexperienced store employees the company had to

design a formalize system and it is witnessed from the case where they have mentioned that each

store manager begins his/her day by calling up the day planner program on the store computer.

The system use to inform them that how many customer will be needed each hour and how much

each customer will need to purchase.

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Q2.Do management information systems, such as the one at Mrs. Fields, alter the conclusion

that large size leads to increased vertical differentiation, formulization and decentralization?

Discuss.

ANSWER:

LARGE SIZE LEADS TO COMPLEXITY.

The management information system does not alter the conclusion that large size leads to

increased vertical differentiation, formulization and decentralization because it has vertical

differentiation and have high formulization and it also has defecto decentralization because store

people are giving the command to computer system according to demand of their store but

actually the system is linked to the park city and monitored by owners.

Yes, it does alter the conclusion, but that could be due to the nature of business. Since its a

cookie business, it does not require a lot of hierarchal levels, unlike other more complex

businesses, where depth in the structure that is more levels between top management and

operative core are required. Technicalities in cookie business are not required.

LARGE SIZE LEADS TO FORMULIZATION.

It usually depends on the skills of the workers if the size is large and the workers are skilled, one

would not observe too much formulization if the workers are unskilled. Then formulization

becomes a must to avoid disruption in business. The job is simple and has repetitive procedures,

thus formulization is a n appropriate option available.

LARGE SIZE LEADS TO DECENTRALIZATION.

It depends on the skills of the workers. If the employees are skilled in a large size organization a

company would not go for centralization, because the workers are skilled and are aware of what

is required, so the top management does not need to be scared of wrong decision taken by the

different units, if the workers are unskilled then centralization is the best option as referred to

this case, inexperienced workers, whether in large organization or small it require centralization

as to minimize faults or mistake.

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Q3.Are computer information systems parts of an organizations technology? Discuss.

ANSWER:

Organization technology is basically the tools, techniques and actions that are used transform

the organizations inputs into outputs. Computer information systems are playing the key role

and are responsible for making the organizations decisions and provide valuable information to

managers they have no link with production process. Since the individual store computer are

linked to park city, which enable randy to access to how things are going it clearly shows that

information systems are part of an organizations technology.

Q4.This system leads to better store level decisions. Do u agree or disagree? Support your

position.

ANSWER:

Yes it does lead to better store level decisions because it tells manager how many patches of

cookie dough to make and when to make them. As the day progresses, sales data are entered in

the computer hourly projections and suggestions on how to improve sales.

Q5.What negative store level repercussion might result from this system?

ANSWER:

Negative store level repercussions that might result from this system are as follows:

It may lead to frustration because of repetition of task.

Operations might stop due to the breakdown in system because they are totally dependent

on their system.

Store people did not have any power to make decision.

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Q6.Explain the potential impact of computerized information systems from the power control

perspective?

ANSWER:

Company can procure raw materials two weeks in advance based on sales projections made by

the system. Every organization wants to have control over the resources by having raw materials

available in advance.

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ASSIGNMENT # 1

ORGANIZATIONAL THEORY AND DESIGN

CASE # 1

Submitted to: Mr. Faisal

Submitted by:

Hamza Jamal 4856

Anum Bukhari 4718

Lukman 4499

Ahmer Khan 4853

Wasiq Atif 4914

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COURSE DAY: THURSDAY 12:00-03:00