Q1.Describe Mrs. Fields Cookies in terms of its complexity, formalization and centralization?

ANSWER:

Complexity refers to degree of differentiation that exists within an organization. This

differentiation can either be horizontal, vertical or even spatial.

HORIZONTAL DIFFERENITATION:
In this scenario store employees are young and inexperienced.
There is no specialization and departmentalization in the organization because most of the task
are performed by the computer information systems.

VERTICAL DIFFERCITATION:
this is a vertical differentiation because it is mentioned in the case
that manager’s hierarchy of the company feels almost flat to store managers, while the tight
management controls are managed.

SPATIAL DIFFERENTIATION:
there is spatial differentiation in the organization because since
Mrs. Field’s cookies have nearly five hundred stores in thirty seven states. So in order to manage
this widely dispersed operation computer information systems have been installed.

CENTERALIZATION:
there is high centralization in the organization because each store
manager after consulting the day planner program makes decision and that day planner is
designed according to the needs of the business. The system set outs the goals, how many
customers will be needed each hour, how much the cookie mixture is to be made etc and passes
these decision to the store managers.

FORMALIZATION:
formalization would tend to be high because most of the
companies nearly 4500 stores employees are young and inexperienced, and know little about the
cookie business so to guide and lead these inexperienced store employees the company had to
design a formalize system and it is witnessed from the case where they have mentioned that each
store manager begins his/her day by calling up the day planner program on the store computer.
The system use to inform them that how many customer will be needed each hour and how much
each customer will need to purchase.
Q2.Do management information systems, such as the one at Mrs. Field’s, alter the conclusion
that large size leads to increased vertical differentiation, formulization and decentralization?
Discuss.

ANSWER:

LARGE SIZE LEADS TO COMPLEXITY.

The management information system does not alter the conclusion that large size leads to
increased vertical differentiation, formulization and decentralization because it has vertical
differentiation and have high formulization and it also has defecto decentralization because store
people are giving the command to computer system according to demand of their store but
actually the system is linked to the park city and monitored by owners.

Yes, it does alter the conclusion, but that could be due to the nature of business. Since it’s a
cookie business, it does not require a lot of hierarchal levels, unlike other more complex
businesses, where depth in the structure that is more levels between top management and
operative core are required. Technicalities in cookie business are not required.

LARGE SIZE LEADS TO FORMULIZATION.

It usually depends on the skills of the workers if the size is large and the workers are skilled, one
would not observe too much formulization if the workers are unskilled. Then formulization
becomes a must to avoid disruption in business. The job is simple and has repetitive procedures,
thus formulization is a n appropriate option available.

LARGE SIZE LEADS TO DECENTRALIZATION.

It depends on the skills of the workers. If the employees are skilled in a large size organization a
company would not go for centralization, because the workers are skilled and are aware of what
is required, so the top management does not need to be scared of wrong decision taken by the
different units, if the workers are unskilled then centralization is the best option as referred to
this case, inexperienced workers, whether in large organization or small it require centralization
as to minimize faults or mistake.
Q3.Are computer information systems parts of an organizations technology? Discuss.

ANSWER:

Organization technology is basically the tools, techniques and actions that are used transform
the organization’s inputs into outputs. Computer information systems are playing the key role
and are responsible for making the organization’s decisions and provide valuable information to
managers they have no link with production process. Since the individual store computer are
linked to park city, which enable randy to access to how things are going it clearly shows that
information systems are part of an organization’s technology.

Q4.This system leads to better store level decisions. Do u agree or disagree? Support your
position.

ANSWER:

Yes it does lead to better store level decisions because it tells manager how many patches of
cookie dough to make and when to make them. As the day progresses, sales data are entered in
the computer hourly projections and suggestions on how to improve sales.

Q5.What negative store level repercussion might result from this system?

ANSWER:

Negative store level repercussions that might result from this system are as follows:

• It may lead to frustration because of repetition of task.

• Operations might stop due to the breakdown in system because they are totally dependent
on their system.

• Store people did not have any power to make decision.

Q6.Explain the potential impact of computerized information systems from the power control
perspective?

ANSWER:

Company can procure raw materials two weeks in advance based on sales projections made by
the system. Every organization wants to have control over the resources by having raw materials
available in advance.
 ASSIGNMENT # 1

ORGANIZATIONAL THEORY AND DESIGN

CASE # 1

Submitted to: Mr. Faisal

Submitted by:
Hamza Jamal 4856
Anum Bukhari 4718
Lukman 4499
Ahmer Khan 4853
Wasiq Atif 4914
COURSE DAY: THURSDAY 12:00-03:00