When the company 1-800-FLOWERS was created, its founder/owner led rapid growth i

Question

When the company 1-800-FLOWERS was created, its founder/owner led rapid growth in its early years. Eventually, however, employees became disengaged because they no longer saw the direction the company was headed. Frustration built leading to a crisis of autonomy and declined growth. A new business manager was hired. Let's pretend that the new CEO read our reading 5. As a result, he likely tried to rekindle growth by:

Decentralizing the organizational design and its decision making

Creating independent business units that focus better on their customer’s needs

Centralizing leadership requiring alignment of business unit strategies and approval from headquarters for strategic decisions

Both 1 and 2 are likely

Explanation / Answer

Answer- Both 1 and 2 are likely

Explanation- When the company is small, a centralized decision making is required to run the business however when the company size is large as in the case study, the best mode of decision-making is decentralized mode. The business units should be separate entities to help the different units focus on their goals and take strategic decisions as required. This helps the companies to have more focus and direction in their job role. Thus, a decentralized organizational design and decision making combined with independent business units will increase the employee’s morale and motivate them to achieve the organizational goals.

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