Case Analysis: Delux Tool Case

629 words - 3 pages

Case Analysis:
Delux Tool Case

Delux Tool Case Study
Mr. I.M. Tycoon is now the owner of three diverse and unique companies; Delux Machine Tools, Safe Buy Insurance Company, and MicroAge Software. They all have been operating under different leadership styles and control measures and need to function as one corporation.
After careful review and analysis of this case, and from an organization design perspective, I would say that the first thing that Mr. I.M. Tycoon should do is develop a thorough organizational structure. A company can have a great mission/product, great people, and great leadership and still not perform well because of poor ...view middle of the document...

Mr. Tycoon should also consider establishing a Bureaucratic control strategy for achieving organizational control that will include all three companies. A Bureaucratic control system uses formal rules, standards, hierarchy, and legitimate authority. This type of control system is best where tasks are certain and workers are independent (Brasfield, 2013). Mr. Tycoon’s company Delux Tool already appears to use a bureaucratic control system, so it shouldn’t be too difficult to initiate effective control systems across the board. Effective control systems maximize potential benefits and minimize dysfunctional behaviors.
With so much change within the organization, there is a certainty of risks that should be identified due to Mr. Tycoon’s unfamiliarity of both the Insurance Division and the MicroAge Division. Simons’ Levers of Control can be put in place to adequately manage those risk using three control systems; diagnostic control, boundary controls and belief controls. An example of Simons’ Levers of control as stated in the...

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