Reference no: EM132387540

John Valesquez, president of a direct mail firm, called Billy McHendry, an operations supervisor, into his office. He opened the meeting with these words:

"Billy, we are reorganizing our approach to managing operations in the company. We're speaking to you first because you are our senior supervisor. Besides that, we want you to play a key role in the reorganization."

"You mean you want me to help figure out how to reorganize the operation to increase productivity?" responded Billy.

"That does sound important. You'll have plenty of opportunity to do that kind of planning after the initial reorganization. What we have in mind is to trim down the management staff in operations. I think that we have one too many layers of management in the company. You supervise about 15 non-management employees, and so do the other five supervisors.

If each supervisor managed 30 subordinates, we could eliminate three supervisory positions. If we did that, we could even eliminate the position of operations director. Right now all six supervisors report to her. I have already spoken to Pam. She intends to retire in six months. I'm thinking of not replacing her if we can get three of you supervisors to handle twice as many subordinates. Each of you will be called area managers.

We will also have to transfer three supervisors into nonsupervisory positions. We think we have that problem squared away. Two of the supervisors have told me they are tired of all the headaches associated with being a supervisor. We are optimistic that we can find a job for the other remaining supervisor."

Billy then said, "I have a few questions at this point. The way I understand it, two of the other supervisors and myself will become area managers. We will each be doing the work of two supervisors. Will we also be expected to do some of the work of the previous operations director?"

"Definitely," said John. "We want you to perform as full-fledged managers. You'll be asked to do a lot of planning for direct mail advertising and shipping of goods."

"Hold on a second," responded Billy. "Each of the two new area managers will be doing the work of two supervisors and one third the work of the previous operations director. Does that mean our pay will more than double?"

"We haven't set the wages for this job exactly yet. You won't double your pay, but you can anticipate a healthy increase--maybe about 20 percent more than you are now receiving."

"I don't know how well this is going to sit with the family. I'll be doing twice as much work as in my old job. This could mean a lot of extra hours for not such a big jump in pay. After you deduct taxes from a 20 percent salary hike, you're lucky to bring home an additional 12 percent."

"Billy, try not to take a narrow view of this opportunity. If you do your job right as a manager, your subordinates can take over some of the 'grunt work.' Become a participative manager. Workers are supposed to like getting involved in supervisory work."

"I'll need some time to think this over," said Billy. "I'm a little concerned that the job calls for me to be a supervisor and a middle manager at the same time. I could be getting in over my head."

1. Should Billy McHendry be jumping at this opportunity or is his caution justified? Explain your reasoning.

2. Considering all the circumstances, what management function will need to be emphasized in the position of area manager? Define the function and explain how it would apply to the area manager.

3. What management skill will need emphasizing in the position of area manager? Define the skill and explain how it would apply to the area manager.

4. What do you think of Valesquez's point that subordinates should assume some of the manager's "grunt work?"