Management 101
Small Group Breakout Exercises
Source: Daft, Richard L. Management. 12 ed. Cengage Learning, 2016.
2. ORGANIZING
Designing Organization Structure
Family Business
Step 1. Assume that you ae a consulting tem to a family business, The family has used an
See ence te aequire-a medium-sized pharmaceutical company. Last year, sales were down 10
frcent from the previous year Indeed, business has declined over the past thre yest, 8
Though the pharmaceutical industry has been growing, The family that acquired the business has
asked for your help.
Step 2. Your task asa group is t0 rank the priority of the departmental functions in the order of
“portance for assigning additional resources t9 improve business in the future,
Step 3. Individually, rank the following ten functions in order of importance, and make a note of
your reasons:
Distribution
Manufacturing
Market research
New-product development
‘Human resources
Product promotion
Quality assurance
Sales
Legal and govemmental affairs
Office of the comptroller
Step 4. As a group, discuss the order of importance for the ten functions, sharing your reasons for
how functional priority should relate to the company’s strategic needs
Step 5. How does the group’s reasoning and ranking differ from your original thinking?
Step 6. What did you learn about organization structure and design from this exercise?