Page 682 - Business Principles and Management

Chapter 25 • Developing an Effective Organization

Another company experienced an increasing number of customer complaints
regarding late deliveries of products. The company had used the same parcel
delivery service to make deliveries to customers for more than 20 years. A study
of the problem revealed that the delivery company had changed its distribution
procedures. It was using larger trucks and making fewer trips to many cities to
cut its costs. To improve customer service, the company stopped using that parcel
service and contracted with a new, smaller delivery company that used a comput-
erized delivery scheduling system. This change allowed the company to schedule
product delivery with customers when they made the purchase and reduced late
deliveries by more than 80 percent. Fixing the underlying delivery service problem
resolved the issue of customer complaints.

CHECKPOINT
Identify the two important elements of an effective organizational
development program.

25.1 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Which of the following is one of the major responsibilities of a human
resources department in responding to organizational change?
a. financial restructuring
b. organizational development
c. personnel cutbacks
d. all of the above
2. The goal of work process improvement includes all of the following
except:
a. eliminating errors
b. improving quality
c. reducing costs
d. terminating employees

THINK CRITICALLY
Answer the following questions as completely as possible.
3. How does the formation and expansion of the European Union
benefit companies in those countries? Do you see any negative
effects on those companies?
4. Why do you believe that many managers and employees have
a difficult time adjusting to the changes businesses
are making?

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