You Can Take That to the Bank (Scenario)
Changes in banking regulations, a series of loan defaults by customers, and a decline in the real estate market have forced Eastern Bank, a large regional Gulf bank, to downsize in an effort to improve profitability and bolster its sagging stock price. Sawsan, a regional branch supervisor, has been tasked with preparing a management report concerning how these cuts are affecting bank operations and customer service. Sawsan believes that the most important problem that has emerged concerns the span of control and decision- making authority within the bank. In the past, bank policy was that no manager should supervise more than six subordinates and only managers could make decisions for their individual units. However, with many of the cuts coming in middle management, upper management has increased its span of control while still insisting on managerial- only 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. As a result, 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. Sawsan believes that structural changes must be made that reflect Eastern Bank's new situation.
-Sawsan believes that Eastern Bank should be more highly adaptive and flexible. She would like Eastern Bank to possess more of a(n) ___________ structure?
A) formalized
B) organic
C) mechanistic
D) technological

Question

Quizplus · Accepted Answer

An organic structure would be more adaptive and flexible, allowing for quicker decision-making and more autonomous teams. This would likely be more beneficial for Eastern Bank in their current situation with reduced middle management and a need for quicker responses to customer needs.