Delux Machine Tools

Delux Machine Tools, Safe Buy Insurance Co., and MicroAge Software are all operating separately for the most part, but all under the management of I.M. Tycoon. The assumption is that in order for the three entities to function properly under this corporate umbrella, they must be restructured to allow for effective and efficient operation. Creating 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 stable for at least the next three years, in order to pay out a monthly profit to the families of Harold and Jane.

Upon analyzing this case, the solution, in my opinion, is for I.M. Tycoon to allow the companies to operate as they have been before, but place each company under another larger bureaucratic structure, with finance becoming a separate functional department. With such a structure, I.M. Tycoon would be able to set performance standards, measure them, and then take action to correct the problems. Furthermore, the structure of each company is so different from the other that it would be difficult, if not disastrous to restructure each company. Both companies are already successful in their own way and employees working there are already accustomed to each style.

Delux Machine Tools has a bureaucratic structure as it uses a more centralized approach. It is widely agreed that decisions come from the top, without any regards to the opinions of lower level employees. The lower level is there to just implement actions decided upon by top management. Delux Machine Tools can also be seen as having a functional structure; with production, finance, research & development, and sales all having their own tasks, but at the end work together to achieve a single result, which would be to get the highest...