Organization Design-Integrated Case: Delux Tool Case

In order for an organization to be effective, some type of structure must be in place. A structured organization establishes procedures, and a set of day-to-day guidelines that directs the activities of individuals toward the achievement of organization goals. "The lack of controls or the wrong kinds or controls-frequently cause irreparable damages to organizations" (Brasfiels, 2012, P. 347). Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. Additionally, it measure progress towards set performance goals and apply corrective actions to ensure that employees are performing per the organization's objectives.

After studying the case, it is clear that the main issue is the lack of an organizational structures. Jane reportedly laughed when it was suggested to her that she has not organized her company enough like a bureaucracy. She also stated that the organizational chart is the oldest piece of paper in the organization, and the least important. The President of Delux Tool, I.M. Tycoon, main objective is to assure that the companies of Harold and Jane will still have healthy financial status after he acquired the company. However, without a control system, the future all three companies are on the path of failure. "Controls systems detect and correct significant variations, or discrepancies, in the result to planned actives" (P. 347).

Another issue was the many different organizational structures, operating techniques and strategies, and different levels of success. Delux Machine Tools, Safe Buy Insurance Co., and MicroAge Software are all operating separately, but under the management of I.M. Tycoon. For example, each agency that belongs to Safe Buy Insurance Co. handles its own paperwork for its clients. The efficiency of the processing of the back office paperwork varies greatly from agency to agency. Additionally, during a conversation between, I.M. and Harold, owner of the insurance company, IM was surprised to learn the only link among there was the common ownership. The assumption is that in order for the three entities to properly function under this corporate umbrella, they must be restructured in such a way to allow for efficient and effective operation. At the end of the day, an organizational structure will determine how the various roles, with their powers and responsibilities, are delegated, controlled, and coordinated, as well as how information flows between the levels in the structure.

I.M. Tycoon's primary goal is to make sure that the companies of his siblings stay financially fit for at least the next three years, in order to pay out a monthly profit to the families of Harold and Jane. As the hired management consultant, my suggestion to I.M. Tycoon is to place each company under one and consider each as divisions.