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Chapter 9: Executing Strategy through Organizational Design
This chapter has explained elements of organizational design that are vital for executing strategy. Leaders of firms, ranging from the smallest sole proprietorship to the largest global corporation, must make decisions about the delegation of authority and responsibility when organizing activities within their firms. Deciding how to best divide labor to increase efficiency and effectiveness is often the starting point for more complex decisions that lead to the creation of formal organizational charts. While small businesses rarely create organization charts, firms that embrace functional, multidivisional, and matrix structures often have reporting relationships with considerable complexity. To execute strategy effectively, managers also depend on the skillful use of organizational control systems that involve output, behavioural , and clan controls. Although introducing more efficient business practices to improve organizational functioning is desirable, executives should avoid letting their firms become “out of control” by being skeptical of management fads. Finally, the legal form a business takes is an important decision with implications for a firm’s organizational structure.
The following chart is an organizational chart for the Canadian federal government. What type of the four structures mentioned in this chapter best fits what you see in this chart?
How does this structure explain why the government seems to move at an incredibly slow pace?
What changes could be made to speed up the government? Would they be beneficial?
Figure 9.25 image description: Organizational Chart for the Federal Government of Canada
Under the sovereign of Canada which is Queen Elizabeth II, and the Governor General, there is the parliament and the Prime Minister. The parliament has two part: the House of Commons and the Senate. Under the Prime Minister, there is the Prime Minister’s office, the ministry, and the Privy Council’s office. The ministry includes 23 departments: Agriculture & Agri-Food, Atlantic Canada Opportunities Agency, Canada Economic Development for Quebec Regions, Canadian Heritage, Citizenship & Immigration, Environment, Finance, Fisheries and Oceans, Foreign Affairs and International Trade, Health, Human Resources Development, Indian Affairs and Northern Development, Industry, Justice, National Defence, National Revenue, Natural Resources, Public Works and Government Services, Solicitor General, Transport, Treasury Board, Veterans Affairs, Western Economic Diversification. And the judiciary is separated from the the sovereign.