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

question 32

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

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and use by one person does not reduce availability to others.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Social Costs

The total cost of an action or decision, including both private costs and any externalities borne by society at large.

Positive Externality

Positive Externality occurs when a transaction or activity benefits a third party not directly involved, like the societal benefit of education or vaccinations.