52 Conclusion

This chapter has explained elements of organizational design that are vital for executing strategy. Leaders of firms, ranging from the smallest sole proprietorship to the largest global corporation, must make decisions about the delegation of authority and responsibility when organizing activities within their firms. Deciding how to best divide labor to increase efficiency and effectiveness is often the starting point for more complex decisions that lead to the creation of formal organizational charts. While small businesses rarely create organization charts, firms that embrace functional, multidivisional, and matrix structures often have reporting relationships with considerable complexity. To execute strategy effectively, managers also depend on the skillful use of organizational control systems that involve output, behavioral, and clan controls. Although introducing more efficient business practices to improve organizational functioning is desirable, executives should avoid letting their firms become “out of control” by being skeptical of management fads. Finally, the legal form a business takes is an important decision with implications for a firm’s organizational structure.

Exercises

1. The following chart is an organizational chart for the Canadian federal government. What type of the four structures mentioned in this chapter best fits what you see in this chart?
2. How does this structure explain why the government seems to move at an incredibly slow pace?
3. What changes could be made to speed up the government? Would they be beneficial?

 

Attributions

Figure 9.1:
name in lights by waferboard (https://www.flickr.com/photos/waferboard/8460986867/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 9.2:
Lost Shoe by Gabriel Lascu (https://www.flickr.com/photos/iahohai/6291137872/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Organizational chart panera by Joea6432 (http://commons.wikimedia.org/wiki/File:Organizational_chart_panera.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second); Businessmen shaking hands by reynermedia (https://www.flickr.com/photos/89228431@N06/11220931254/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); Categorisation-hierarchy-top2down by Andreas Plank (http://commons.wikimedia.org/wiki/File:Categorisation-hierarchy-top2down.svg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth)

Figure 9.3:
Defrance, Visiting a nail factory (18th c) by Léonard Defrance (http://commons.wikimedia.org/wiki/File:Defrance,_Visiting_a_nail_factory_(18th_c).jpg) is in the Public Domain

Figure 9.4:
A-line1913 by Ford company (http://en.wikipedia.org/wiki/File:A-line1913.jpg) is in the Public Domain

Figure 9.5:
Riveting meeting by Mark Hillary (https://www.flickr.com/photos/markhillary/370268513/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 9.7:
1974 Canadian Penny (Reverse) by yaybiscuits123 (https://www.flickr.com/photos/33755808@N08/3429469823/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); Tattoo arms by Laughlin Elkind (http://commons.wikimedia.org/wiki/File:Tattoo_arms.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (second); (Three elevations of) ceiling panel A, door hall to kitchen dept, north, east (elevations), section looking north (GGUSC-BlackerR-5354) by Unknown (http://commons.wikimedia.org/wiki/File:(Three_elevations_of)_ceiling_panel_A,_door_hall_to_kitchen_dept,_north,_east_(elevations),_section_looking_north_(GGUSC-BlackerR-5354).jpg) is in the Public Domain (third); LGH PEUKALOISET by Jukka Sirviö (http://commons.wikimedia.org/wiki/File:LGH_PEUKALOISET.jpg) is in the Public Domain (fourth); Peerless Laundry & Dry Cleaning by Steve Snodgrass (https://www.flickr.com/photos/stevensnodgrass/6616273185/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fifth); Yoga 23 by Oleg Klementiev (https://www.flickr.com/photos/impuls-f/3947686324/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (sixth); A guitar ubt by Tsca (http://commons.wikimedia.org/wiki/File:A_guitar_ubt.jpeg) is in the Public Domain (seventh); The Bride: Michelle by Tony Alter (https://www.flickr.com/photos/78428166@N00/5892873450/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (eighth)

Figure 9.9:
Safeway (5115784317) by tales of a wandering youkai (http://commons.wikimedia.org/wiki/File:Safeway_(5115784317).jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); Spa interiors by Avilash behera (http://commons.wikimedia.org/wiki/File:Spa_interiors.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (second)

Figure 9.11:
Double Big Mac Meal at McDonald’s by tales of a wandering youkai (https://www.flickr.com/photos/z0/5116376216/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 9.13:
Grampeador by Andrevruas (http://commons.wikimedia.org/wiki/File:Grampeador.JPG) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en)

Figure 9.14:
adidas_Men’s_WINTER STORY_OT-TECH GORE-TEX HOODED JACKET_E95062 by adifansnet (https://www.flickr.com/photos/adifans/3706215019/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/)

Figure 9.15:
KatrinaNewOrleansFlooded edit2 by AP Photo/U.S. Coast Guard, Petty Officer 2nd Class Kyle Niemi (http://en.wikipedia.org/wiki/File:KatrinaNewOrleansFlooded_edit2.jpg) is in the Public Domain

Figure 9.16:
Couples in Real Estate Agent’s Office by Mark Moz (https://www.flickr.com/photos/106574022@N04/10797567855/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); FAIL by amboo who? (https://www.flickr.com/photos/amboo213/4020584983/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (second); Shake It, Start Over by Rex Sorgatz (http://www.flickr.com/photos/fimoculous/3210330182/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (third); just the ones I’m getting rid of by Logan Ingalls (https://www.flickr.com/photos/plutor/134329177/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); Waiter_01 by Beatrice Murch (http://commons.wikimedia.org/wiki/File:Waiter_01.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (fifth)

Figure 9.17:
UBC Museum of Anthropology Building1 by Tim Gillin (http://commons.wikimedia.org/wiki/File:UBC_Museum_of_Anthropology_Building1.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en)

Figure 9.18:
Green flip flops on red background by Steve Johnson (http://commons.wikimedia.org/wiki/File:Green_flip_flops_on_red_background.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (first); Casual Friday Victory by Morgan (https://www.flickr.com/photos/meddygarnet/4409732265/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); Google Cheque epayservice (http://commons.wikimedia.org/wiki/File:Google_Cheque_epayservice.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/3.0/deed.en) (third); perfect attendance by J E Theriot (https://www.flickr.com/photos/jetheriot/8413883357/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (fourth); No Smoking by AIGA (http://commons.wikimedia.org/wiki/File:No_Smoking.svg) is in the Public Domain (fifth)

Figure 9.19:
Manhattan New York City 2009 PD 20091130 209 by Sterilgutassistentin (http://en.wikipedia.org/wiki/File:Manhattan_New_York_City_2009_PD_20091130_209.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 9.20:
“Magic” by Frank Kovalchek (http://www.flickr.com/photos/72213316@N00/5613296254/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (first); E by Roddy Keetch (https://www.flickr.com/photos/rkeetch/2736503731/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/) (second); The Cairn UBC by Xicotencatl (http://commons.wikimedia.org/wiki/File:The_Cairn_UBC.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (third)

Figure 9.21:
Noogler by Tduk Alex Lozupone (http://en.wikipedia.org/wiki/File:Noogler.png) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en)

Figure 9.22:
2006-02-04 Metal spiral  by Roger McLassus (http://commons.wikimedia.org/wiki/File:2006-02-04_Metal_spiral.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (first); People in small discussion group meeting by Harless Todd (http://commons.wikimedia.org/wiki/File:People_in_small_discussion_group_meeting.jpg) is in the Public Domain (second); Cubo completato by Masakazu “Matto” Matsumoto (http://commons.wikimedia.org/wiki/File:Cubo_completato.jpg) used under CC-BY license (http://creativecommons.org/licenses/by/2.0/deed.en) (third); WestJet 737-700 (2849416111) by RAF-YYC (http://commons.wikimedia.org/wiki/File:WestJet_737-700_(2849416111).jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (fourth)

Figure 9.23:
Kickball by James (https://www.flickr.com/photos/monkeyatlarge/37469699/) used under CC-BY license (https://creativecommons.org/licenses/by/2.0/)

Figure 9.24:
Small Businesses – geograph.org.uk – 682645 by Mary and Angus Hogg (http://commons.wikimedia.org/wiki/File:Small_Businesses_-_geograph.org.uk_-_682645.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/2.0/deed.en) (first); Handshake – 2 men by Flazingo Photos (https://www.flickr.com/photos/124247024@N07/13903385550/) used under CC-BY-SA license (https://creativecommons.org/licenses/by-sa/2.0/) (second); Wall Street & Broadway by Fletcher6 (http://commons.wikimedia.org/wiki/File:Wall_Street_%26_Broadway.JPG) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (third); Analisis Planta teatro de San Bernardo2 by Lycant (http://commons.wikimedia.org/wiki/File:Analisis_Planta_teatro_de_San_Bernardo2.jpg) used under CC-BY-SA license (http://creativecommons.org/licenses/by-sa/3.0/deed.en) (fourth)