Organizational Architecture and Decision Making
1.Mark Wilson, chief of personnel, has been instructed to increase the hiring of woment at the Morton Cement Company. Mark will be evaluated by the company president Josh Cohen on his success or failure in meeting this goal. Mark does not evaluate the performance of any of the division chiefs, and each chief must approve all new division employees. Do you expect Mark to succeed in this endeavor? Why or why not? Explain your reasoning.
2. Define the terms decision management and decision control. Under what circumstances might it be optimal to make one individual responsible for both decision management and decision control? What do you expect the ownership of common stock to look like in such a firm? Explain.
3. Jan van der Schmidt was the founder of a successful chain of restaurants located throughout Europe. He died uexpectectedly at the age of 55. Jan was sole owner of the compan's common stock and was known for being quite authoritarian. He personally made most of the company's perssonnel decisions. He also made moost of the decisions on menu selection, food suppliers, and advertising programs. Employees throughout the firm are paid fixed salaries and were closely monitored by van der Schmidt. Jan's son, Karl, spent much of his youth driving BMWs around Holland and Germany at high speeds. He spent little time working with his father in the restaurant business. . Nonetheless. Karl is smart and just and just received his MBA degree from a leading business school. Karl has decided to follow his father as the chief operating officer of the restaurant chain. What advice about orgainzational architecture for the company would you offer Karl now that he has taken over?