PSB9-1: Organizing a Company

Instructions
1. Construct an organizational chart depicting the way you think the Dried Foods Solution
Company is organized.

2, Define the departments and the relationships that you believe could most likely be downsized
if growth slows or stops.

3. What would be the advantages to the company if the production operations were transferred
to an offshore location such as China? What are the disadvantages?

4. What would be the advantages and challenges to the company if it chose to incorporate an
online sales division?

5. What if the production operations were subcontracted? The disadvantages?

6. Should the organization, as many firms have done; subcontracted the human resources
functions? Why or why not?

Q 2. Define the departments and the relationships that you believe could most likely be
downsized if growth slows or stops. The Production worker of 60 may be reduce and the
salesperson of 100 also may be reduce as well if the growth slows or stop.

Q 3. The advantages the company may have for the production operations to be transferred to an
offshore location such as China, would be that the cost of labor from the production worker
would be low and the cost of imports of the good could be higher to the customer. And the
bottom line increase.

Q 4. The advantages and challenges to the company if it chose to incorporate an online sales
division.
I think that incorporating an online sales division has an advantage in that the online division
would be able to reach customers that the salesperson cannot. And the challenges could be how
many salespersons to downsize and who to keep if they go with the incorporating of the online
division.
Q 5. The disadvantages if the production operations were subcontracted, some disadvantages I
think is that the new contractor may just be about the money and not the customer
services. The employee’s moral may become low since; they may feel next in line for
subcontracting of their position. The employee may feel a disconnect with the uncertain.

Q 6. Should the organization, as many firms have done; subcontracted the human resources
functions? Why or why not?

I would say yes to the subcontracting of the human resource functions because,
sometime the human resource dept. may become stagnant at time in their process to
keep up with company policy and procedure, getting the right people for the jobs.