Management 12th Edition by Richard Daft

Exercise 15

You have been hired to manage a 20-person staff for Nightlight Travels, a travel agency in Las Vegas. For five years, sales have been hammered by the global recession, and staff morale has plummeted as star employees have left for positions in more secure industries. Key customer relationships have been damaged by the sloppy and unprofessional work habits of the remaining staff members. Your first responsibility as new manager is to create next year's budget for all planned expenditures. But first you must decide if you will adopt a hierarchical approach or a decentralized approach to control. Which one would you choose, and why?