Case Study Part 3: The Rise of Finagle A Bagel
1. What does Finagle A Bagel’s upside-down organization chart suggest about the delegation of authority and coordination techniques within the company?
The upside down organization chart suggests that the lower layer of management and other staff members enjoy an independence in making on the ground decisions to suit the situations. This approach is necessary to empower the employs so that they have a sense of ownership in any organization. Research indicates that the delegation of authority can empower the managers in a sense that they can take advantage of the innovation explored by the lower layer of workers. (Colombo & Delmastro, 2004). Delegation of authority might be seen as a step that decreases the power of the leadership but the reality is different. In reality the people who are delegated the power feel obliged and feel a sense of moral responsibility to not let the top management down.
Finagle A Bagel has adopted this strategy to let their lower staff take steps on their own for the satisfaction of their customers. For example if the employs were not taking immediate steps in resolving the issues of the customer and had to wait for the permission of the upper layer of management, this would definitely result in a situation where the customers would feel dissatisfied and unconvinced.
2. Is Finagle A Bagel a tall or flat organization? How do you know?
Finagle A Bagel is a flat organization. The reason is the way the top management has the capacity to delegate their authority to the lower level of management or the employs themselves. This kind of setup makes an organization more responsive to their customers as they can deal with the issues of their customers in a timelier manner. On the spot customer enquiries and solutions are sought. The employs can offer free gifts without the any need for the permission of the top management. Most of the decisions about how to deal with the customers are made in the store. Flat organizations produce more higher managerial satisfaction environment than tall organizations (Porter & Lawler, 1976).
On the other hand, a tall organization has a layer management system where the power of decision making and authority remains in specific hands. If Finagle A Bagel was such an organization, there would be miscommunications as the decision making authorities would be required to intervene in most of the issues happening inside the stores.
3. What values seem to permeate Finagle A Bagel’s corporate culture?
There are multiple factors that permeate Finagle A Bagel corporate culture. I would say that the impact of these values is highly positive. For example Finagle A Bagel promote team work which enables its employs help each other and learn from one another. They believe in positive work ethics. They have a strong customer support system which results in highly satisfied and loyal customers. Overall speaking, Finagle A Bagel has an environment that has developed a corporate culture in which the employs feel empowered and cared. This is why they try their best to give back to their organization by performing their duties effectively.
4. Why would Finagle A Bagel build a dough factory that has more capacity than the company needs to supply its stores and its wholesale customers?
Finagle A Bagel has future expansion plans in my opinion. This is why they are building a dough factory that would help them fulfil their demands in the future when they would have a larger presence that what they have today. I believe that this is a good futuristic plan. Finagle A Bagel want to be an increased demand in the future and don’t want to end up in a situation where they cannot supply enough against their customer demands.
Colombo, M. G., & Delmastro, M. (2004). Delegation of authority in business organizations: an empirical test. The Journal of Industrial Economics, 52(1), 53-80.
Porter, L. W., & Lawler III, E. E. (1976). The effects of ‘tall’versus ‘flat’organization structures on managerial job satisfaction (pp. 147-159). Palgrave Macmillan UK.Pride, W., Hughes, R. and Kapoor, J. (2015). Foundations of Business, 4th Edition. Independence, KY: Cengage Publishing.