1. A decision to retain an in-house arm of agency Weiden & Kennedy by Nike exemplify the concept of organizational design by allowing Nike use the agency’s creative designers to focus solely on Nike work, giving them un-parallel access to executives, researchers and anyone else who might provide Nike advertisers with their next inspiration for marketing greatness before listening to any other organization. Having the agency in the building is having them at their disposal at anytime they need them and also the agency will have to consider them first incase of any new ad or good idea discovered by the agency or when Nike needs to salvage a problem with the help of the agency. Thus, the agency at their finger-tips serves great advantages for not only trouble shooting.
2. I believe the organic design of Nike helped in posing the sweatshop labor problem Nike faced. Using a flat structure helps get a lot of work in a short time but none-the-less can cause a lot of trouble as seen in Nike. With a more highly bureaucratic structure, also known as Mechanistic design, practices will be closely monitored to prevent such problems from arising. In a centralized design with many rules and procedures which have to be followed, a clear-cut division of labor and narrow spans of control and formal coordination, the higher management/ board of directors will be very well informed on what is happening in the organization at each and every level. Though organic design has more personal coordination a more strict coordination will help in preventing such issues. For example, if Nike had a tight structure, they would have a predictable goal, centralized authority on whom to report directly to, many rules and procedures they must abide by, a narrow span of control so as to control their workers/management’s practices, everyone has his/her specialized task, and formal and impersonal coordinator. Having this sort of clear division of labor and coordination helps keep the...
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