You Can Take That to the Bank (Scenario)Changes in banking regulations, a series of loan defaults by dotcom customers and a decline in the California real estate market have forced Western Bank, a large regional West Coast bank, to downsize in an effort to improve profitability and bolster its declining stock prices. Susan, a regional branch supervisor for the Sacramento district, has been tasked with preparing a management report concerning how these cuts are affecting bank operations and customer service. Susan believes that the most important problem that has emerged concerns span of control and decision-making authority within the bank. In the past, bank policy indicated that no manager should supervise more than six subordinates and only managers could make decisions for their

Question

individual units. However, with many of the middle managers being laid-off, upper management has increased its span of control while still insisting on retaining control on decision making at the unit level. The result is that upper managers spend all of their time putting out fires and subordinates feel they are getting answers too slowly. Lower level employees are requesting greater authority to make decisions on their own. However, they are not as experienced at making decisions as upper-level managers. Susan believes that structural changes must be made to help Western Bank deal with the new situation effectively.Based upon the preceding description of Western Bank's situation, which aspect of the current situation is inconsistent with Western Bank's decision to maintain a centralized form of decision making?

A. Lower-level managers want a voice in decisions.
B. Lower-level managers are not as experienced at making decisions as upper-level managers.
C. The company is large.
D. The organization is facing a crisis.

Answer 1

Answer: A