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?

Answer 1

Answer:

Yes.

Explanation:

The company currently has HR units, fiscal units, and purchasing units at each plant. This can be costly for the company since all these units incur cost and have to be paid for separately.

By centralizing the operations, that is, bringing these functions together in one location, Corey will need fewer employees. Hence, he shall be able to save costs by having to pay lower salaries. Moreover, there shall be greater consistency as work across various plants shall not be done by the same employees.

Although the costs of travel shall increase for the company, the cost savings in the form of lower salaries should definitely outweigh this increase.

Answer 2

Answer: Yes or no; depending on the below explanation (this is because the question is incomplete)



Explanation:

Corey wants to reorganize his company, with the prime objectives of:

(A) Saving money

(B) Creating consistency

The question is "Is Corey correct?"

This means "Will he be doing the right thing by reorganizing the company in the described manner?"

The answer lies in the current state of the company.

(A) Corey will save money from his plan if:

- there are not many customers across the company's plants. In this case, money will be saved if the goods and services offered or sold by the company are deployed from one plant to the others.

- the company is low on capital and needs to lay off workers. In this case, the company won't have any choice than to reduce the number of operations at each plant.

- the goods and services rendered by his company are no more in high demand in most of the regions where the company's plants are situated.

- cost of raw materials will be minimized (relative to revenue maximization) by reducing the number of plants the company has or the number of operations in each plant.

(B) Corey will create consistency from his plan if in his reorganization, be brings to the designated plant, the best resources of the company; for efficiency sake.

If these are Corey's reasons for the reorganization of his company, then Corey is correct.

If contrasting reasons to the ones laid out above are Corey's reasons or are the current state of the company, then Corey will not be correct.