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Organizational Design

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Organizational Design
Case Study: The Woody Manufacturing Company

OBJECTIVE: To apply the concepts learned about structure and agility at the individual, group, and organizational levels in designing the Woody Manufacturing Company.

TEAM ASSIGNMENT: Get together with your team and develop a proposal for Mr.Woody that, if followed, would help him fulfill his vision.

Designing a New Furniture Company Mr. Woody, the owner/operator of a small furniture company specializing in the manufacture of high-quality bar stools, has experienced a tremendous growth in demand for his products. He has standing orders for $750,000. Consequently, Mr. Woody has decided to expand his organization and attack the market aggressively. His stated mission is “to manufacture world-class products that are competitive in the world market in quality, reliability, performance, and profitability.” He would like to create a culture where “pride, ownership, employment security, and trust” are a way of life. He just finished a set of interviews, and he has hired 32 new workers with the following skills:

Four skilled craftspeople. Ten people with some woodworking experience. Twelve people with no previous woodworking experience or other skills. One nurse. One schoolteacher. One bookkeeper. Three people with some managerial experience in nonmanufacturing settings.

Mr.Woody (with your help) must now decide how to design his new organization. This design will include the management structure, pay system, and the allocation of work to individuals and groups. The bar stool–making process has 15 steps:

1. Wood is selected. 2. Wood is cut to size. 3. Defects are removed. 4. Wood is planed to exact specifications. 5. Joints are cut. 6. Tops are glued and assembled. 7. Legs/bases are prepared. 8. Legs/bases are attached to tops. 9. Bar stools are sanded. 10. Stain is applied. 11. Varnish is applied. 12. Bar stools are sanded. 13. Varnish is reapplied. 14. Bar stools are packaged. 15. Bar stools are delivered to

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