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operation management

How well do you think such a structure might work? What do you perceive would be its advantages and disadvantages?

Major Advantage: Managers could focus change efforts where they are most needed. This type of structure could encourage managers to constant improvement efforts as they try to improve their products’ position in the hierarchy.

Major Disadvantage: This could result in constant change and movement as products or product categories shift from one grouping to another. Managers might have difficulty with long tern plans because they could not accurately predict which products would be in which categories in one, three, or five years. All levels of planning could be adversely affected (see Chapter 8-Planning.)

Career level disadvantage: Managers in the “Fix” Category might be viewed as less effective than those in the “Grow” Category. This could be a demotivator for those managers and lead to even lower productivity or increased turnover.

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