Question

umbo Industrial Supply has grown from a one-location firm with a restricted product line to a multi-state organization with numerous product lines and a large sales staff. Sales have doubled every year for the last three years. It currently has a simple structure with Jared Smith, the owner-manager, making all major decisions. Jumbo is probably now experiencing or will soon experience: a. excessive competition among division managers. b. limited communication among functional specialists. c. coordination and control problems. d. bureaucratic inefficiencies.

Answer 1

Answer: c. coordination and control problems.

Explanation:

Coordination is essentially the glue that holds an organization together. It makes planning possible and uses communication to achieve organizational goals. Control complements coordination by putting checks in place to ensure that the organization does not stray from its purpose.  

When Jumbo Industrial Supply was once in just one location, Jared being the sole decision maker and being in charge of these functions would have been achievable. Expansion into multiple states and increased business activity will put strains on his ability to coordinate and control all the functions of the business. For Jumbo to maintain coordination and control of the growing business, there has to be a more robust management system in place.