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Mba540 Managerial Economics Ch. 13 Case Study

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Submitted By adamprins
Words 686
Pages 3
Specialized or Broad?
Adam M. Prins
Saint Leo University

Case Summary The Bagby Copy Company is at a crossroads in terms of its organizational architecture moving forward. The company produces an array of copy machines and sells them worldwide. Currently, Bagby is deciding whether or not to specify production and sales by type of copy machine produced or by the country in which sales are to be made. Additionally, Bagby is deciding how to best group the makers of its wire harness assemblies which are required to operate its machines. The benefit of each of these options and the appropriate decisions remains to be discussed.
Analysis
Bagby is weighing a choice between two types of jobs: specialized task assignments or broad task assignments. Broad task assignments mean “employees are trained to complete more than one function” (Brickley, Smith, & Zimmerman, 2016, p. 412). Broad task assignments require more training to cross-train employees in the various functions required. This type of job generally requires more advanced education which can increase overall costs and flexibility as employees can cover for each other where needed to increase productivity. “Specialized task assignments allows the firm to match people with jobs based on skills and training” (Brickley, Smith, & Zimmerman, 2016, p. 412). This enables workers to work within a known specialty and perform one function well and, as a result, requires lower cross-training expenses. It allows managers to exploit comparative advantage. Conversely, if only one employee performs a particular function, then it could slow productivity if that person is absent from work. According to Brickley, Smith, & Zimmerman (2016), another disadvantage of specialized task assignment is the tendency of an employee with only one task to focus more on that task at the expense of concern for the overall

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