AG Ltd buys hydraulic equipment from three suppliers. Each has a different type of organisational structure and management style.
Set up 30 years ago by the current managing director, company A is still organised in a tall hierarchical structure. It employs approximately 100 people.
It is well known in the industry for the quality of its products but lately there have been problems with delivering on time and at the last AGM shareholders expressed concern about its profitability. The managing director maintains a very rigid line of command.
The workforce is made up of directors, senior managers, middle managers and other staff. The job roles within each of these categories are as follows.
Managing, finance, marketing, production, technical, personnel.
Purchasing, sales, advertising, finance, personnel, marketing, public relations, research and development, product design, production, maintenance, quality assurance, customer relations.