Organization Design the Current Situation Research Proposal

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This is generically possible as the types of services and products offered could be combined to constitute complementarities. For instance, the Sale-Buy Insurance Company could offer car insurance for the final buyers - this would however require the collaboration of Delux Machine Tool's partners. Also, the programmers at MicroAge Software could collaborate with the Research and Development Team at Delux Machine Tools and create more innovative products and technologies.

The three companies would become sister organizations, under the same patronage, ruled by the same principles and norms, and following the same goal. This strategy would lead to the creation of a conglomerate company - one possessing various smaller companies, activating in different industries. This would then mean that the organizations would generate a combined profit, which could be better allocated to support their development.

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Say for instance that MicroAge Software registers a good year, but Sale-Buy Insurance Company does not. The profits could be redistributed to help the insurance company recover. This strategy could also be applied in other scenarios, such as capital distribution, in the form of assets or even human resource. Otherwise put, the creation of a conglomerate through the process of organizational design would result in a superior efficiency of capital allocation (Book Rags, 2006).

The suggested process is a rather complex one and would imply changes at numerous levels. Hierarchically, Delux would be the superior, and the remaining two companies would act as its subalterns. From the standpoint of the organizational chart, this could present itself as follows:.....

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