Farid's Donuts (Scenario) Since the Integration of Two New Stores in Beruit, Lebanon

question 126

Multiple Choice

Farid's Donuts (Scenario)
Since the integration of two new stores in Beruit, Lebanon, Farid's Donuts, Inc., has recognized that there is a need for reengineering the entire organization. The main need is to install new state- of- the- art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer at three- fourths of the book value, or a loss of
$2,000 per store. This means that employees will have to be trained to operate the new computer programmed equipment. Farid is setting up the main store as a training store. Employees from the other stores will train at the main store for the five days that their respective store's equipment is being converted. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before that store's employees return from training. The organization is also implementing teams to replace the old employee reporting system. Ordering materials will now be done by an intranet among the stores and the corporate purchasing function. Farid has promised that no one will lose his or her job because of the reengineering organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. The planned opening of a new store in a nearby town will absorb any "excess" employees resulting from to the efficiency of the new equipment.
-What is the most successful way to deal with the human side of the reengineering to help to change people and the nature and quality of their interpersonal work relationships?

• A) training and development
• B) give the employees a training manual
• C) reengineering training
• D) organizational development

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Definitions:

Long Run

A period in which all factors of production and costs are variable, and firms can adjust all inputs.

Short-Run Aggregate Supply Curve

A graphical representation that shows the relationship between the total production of goods and services in an economy at different price levels in the short run, indicating how much output is supplied by firms at various prices.

Long-Run Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and optimal resource allocation over time.

Expected Price Level

This term indicates the average of current and anticipated prices for goods and services in an economy.