Spin-Out Management: Theory and Practice Critique

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Name: Yue Qi

BA501 1H-Management Theory & Org-FA12

Instructor: Dr.Scott Burke

Week 8(10/17-10/23)-Spin-out management: Theory and practice Critique

Critique
The article The Tensions of Organization Design: Optimizing Trade-offs discusses a new theory of organization design which is the tensions of organization design that managers must face and resolve. Robert Simons introduces four crises in different stages of organizational growth, including the crisis of leadership, the crisis of autonomy, the crisis of control, and the crisis of red tape. To anticipate and avoid the crises just mentioned, managers must design organizations that can adapt over time. And the author offers a number of tensions that affect organization design which we must be sensitive to the need to reconcile the tensions between: Strategy and structure, Accountability and adaptability, Ladders and rings, Self-interest and mission success. The author uses an organized thought process throughout the article that helps to develop a clear understanding of the subject matter. The author begins with a background of the importance of this subject and the factors that make the subject relevant in today’s environment: “New technologies have increased productive capacity, markets have become global, the pace of competition has quickened, work has become more complex, and the capabilities of workers have been enhanced. Information technology, outsourcing, and alliances have changed the traditional boundaries of the firm”. Then the article go with the negative effects an organization will encounter by doing nothing, using previous research from Greiner and Miller & Friesen. Next, the four tensions of organization design are discussed in a manner that is easy to comprehend. Each tension is given its own section that gives a background of the information that is about to be presented and the implications for organizations to tend to those tensions. A crisis of leadership emerges...
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