Talha Alam Khan

IM-045
2019-20

Malard Case Study Solution

Question 1:
Malard Manufacturing Co however has an imbalance between the horizontal and vertical structure
causing many problems to its operation like, the environment of the business is uncertain because the
structure is flat and horizontal rather than a balance of horizontal and vertical. The business really only
has two levels of management in production, that is the department managers and the executive vice
president. This means there is equal power between department heads but tight control by senior
management making Malard’s managerial structure centralized. Due to this imbalance there can be
many problems for the business.
Due to the fact that Malard is a large company with over 1400 employees, a tight span of control is
therefore inappropriate. It is unnecessary and not suitable for each department manager to always turn
to the executive vice president for help rather than to one another because;
 It slows down production, lessening the businesses efficiency.
 It also creates gaps in communication between departments as department managers are becoming
uncommunicative and frustrated, that the work is being delayed and taking a long time to complete.
 Unnecessary delays occur as the executive vice president is busy in other things as well.

Question 2:
To achieve the target of manufacturing the CV 305 in a month, I will recommend department managers
to hold essential meetings to discuss the issues and targets and identify their current position. This will
allow for more communication between the departments and Julie, so she knows how each department
is functioning. If any problems arise she will be able to be on top of it straight away figuring out solutions
to solve the issue.
To achieve the target on time department heads need to work together. A plan of action also needs to
be established which clearly identifies the level of completion of the CV305 in each stage of production.
Now that a plan is established and decided on by all department managers two things can be done to
complete it in 30 days.

Question 3:
Vertical structures generally have many levels of power and command while horizontal structures have
an equal distribution of power and increased individualism. It is important for businesses to incorporate
a usage of both equally.
Decentralization will lower the span of control for the business and would then allow managers to make
their own decisions. This will essentially raise moral and boost the quality of work. The authority to take
strategic decisions can remain with the top management, but decisions related to job design can be
delegated to the head of departments and team leaders.