Jackson Inc. is a bicycle and cycling product manufacturer. Sales have been declining in the last several years, and executives have determined that the company has produced too many different products and lacks focus. As a result, executives wish to reorganize in an effort to revitalize the company. Efficiency and control will be the company's focus as they move to cut costs and streamline product lines. Additionally, executives feel it is important to restrict decision making to key functional managers who will communicate decisions to their subordinates. What type of organizational design would best fit this company?

Question

Quizplus · Accepted Answer

The focus on efficiency and control, as well as the desire to restrict decision making to key functional managers, suggests a centralized structure with a line design would be the best fit for Jackson Inc. With this design, decision making is concentrated at the top of the organization, and communication and control flow through a clear chain of command. This should help Jackson Inc. cut costs, streamline their product lines, and refocus the company.