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Bennett's Machine Shop - Organizational Theory

 

Initially, Bennett's business started small with just him, but as business grew, so came the need for a larger space, increased staff, and the complexities of running a business. This paper will focus on the positive and negative aspects of Bennett's "organizational structure" which can be applied for future reference.
             Bennett's Organizational Challenges.
             As previously eluded to, there were challenges in Bennett's "organizational structure." According to Jones (2013), "Organizational structure is based on a system of interlocking roles, and the relationship of one role to another is defined by task-related behaviors" (p. 94). As illustrated in the organizational chart of Bennett's Machine Shop (See Appendix A), Bennett's lack of clearly defined "roles" we offer precipitated his business' downfall. Bennett's shop off of Sprig Street being found to be "messy" presented yet another symptom of problematic management. It was described as having several used "greasy" engines found in and outside of the shop. There were also a number of various other mechanical parts strewn about the area; obviously there was a lack of attention to detail. .
             Secondly, Bennett made a multitude of poor financial decisions. Amongst others, this included his productivity and engine jobs being tracked in the form of a "32-line yellow legal pad" (Jones, 2013). The machine shop had no formal system in place to track inventory bought or sold. Bennett continued to pay for advertising that did not yield profits and Bennett was over extended with the opening of additional shops. Lastly, and quite noteworthy, Bennett looked to secure his personal and professional status by obtaining numerous personal loans. With that said, returning to our initial assessment, Bennett's lack of attention to detail gave way to his business being mismanaged.


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