Discussion

Watlow Electric Manufacturing Company designs and manufactures  industrial heaters, temperature sensors, controllers, and supporting  software as well as assemblies – all of the components of a thermal  system (Watlow, n.d.). Since 1922, the company has grown in product  capability, market experience and global reach (Watlow, n.d.).  The  company holds more than 450 patents and employs 2,000 employees working  in nine (9) manufacturing facilities and three (3) technology centers in  the United States, Mexico, Europe, and Asia (Watlow, n.d.). Watlow also  has sales offices in 16 countries around the world. The company  continues to grow, while the commitment remains the same – to provide  its customers with superior products and services for their individual  needs (Watlow, n.d.).

Except in very small organizations, top managers must delegate some decisions. In a decentralized organization,  decision-making authority is spread throughout the organization rather  than being confined to a few top executives. As noted above, out of  necessity all large organizations are decentralized to some extent.  Organizations do differ, however, in the extent to which they are  decentralized. In strongly centralized organizations, decision-making  authority is reluctantly delegated to lower-level managers who have  little freedom to make decisions. In strongly decentralized  organizations, even the lowest-level managers are empowered to make as  many decisions as possible. Most organizations fall somewhere between  these two (2) extremes.

Source:
Garrison, R., Noreen, E., & Brewer, P. (2014). Managerial accounting (15th ed.). Columbus, OH: McGraw-Hill Education.

You are Chief Operations Officer (COO) of Watlow Electric  Manufacturing Company.  The company currently operates under a  decentralized organizational structure; however, recent mishaps have  occurred due to a perceived lack of control over manufacturing processes  and marketing decisions. In response, the CEO is considering the  possibility of changing the organizational structure of the company.   You have been asked to consider the recent issues experienced at the  company, determine if they can be reasonably attributed to the current  organizational structure, consider alternative structures and their pros  and cons, and then formulate a recommendation using sound arguments  that are well supported, properly vetted, and logically presented. It is  important that management carefully consider any potential ethical  implications associated with their stated position. If there are any  potential ethical concerns associated with your position, they should be  identified and discussed in the final recommendation.

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