Question

Corey wants to reorganize the company. Currently there are HR units at each plant, fiscal units at each plant, and purchasing units at each plant He feels that by bringing all of those key functions together in one location and deploying them to the plants only when needed, he will save money and also create consistency. Is Corey correct? Multiple Choice No, because with fewer employees in these units, the work will take longer actually costing the company more. No, because even though the company will be able to save on bayroll the costs of travel will be increased No, because the employees will not feel that their needs are being met by the company O o oo O Yes, because the company will be able to make decisions more quickly, since all the key players will be in one location Yes, because the company will need fewer employees in these units, saving money and allowing for consistency in process 12 of 40 !!! < Prev Next > MacBook Pro

Answer 1

Corey's belief in centralizing business units focuses on cost savings and consistency but does not account for possible increased travel costs, employee dissatisfaction, and efficiency losses.

Step-by-step explanation:

The question posed is whether Corey is correct in thinking that centralizing HR, fiscal, and purchasing units at one location will save money and create consistency in the company. While Corey believes that this centralization will lead to cost savings and consistency, there are multiple considerations to take into account. On one hand, having all key players in one location could quicken decision-making processes. On the other hand, there could be increased travel costs and potential dissatisfaction among employees who feel that their needs are not being met. Moreover, centralization could lead to efficiency losses if fewer employees in centralized units are overwhelmed with work. These aspects reflect issues similar to those encountered during downsizing or following a merger or acquisition, where company restructuring often leads to staff reductions, potential efficiencies due to elimination of redundancies, but also possible disruptions in organizational culture and additional stress for the remaining employees.