CASE FOR ANALYSIS ~ SHOE CORPORATION OF ILLINOIS
OVERVIEW: This case deals with a manufacturer of women’s shoes that purposely changes styles frequently to take advantage of the flexibility of a small organization. However, decision making in the organization follows such a convoluted pattern that conflict is a given. Work flow needs to be re-examined, and adjusted for efficiency.
DISCUSSION QUESTIONS TO ASSIGN:
1. Analyze organizational structure.
2. What suggestions do you have for improvement in information flow?
3. How would you characterize the current interdependence between departments? How should it be improved?
4. Given that the president’s intent is to change shoe styles frequently, how could innovation be
All of theses issues only hinder communication, coordination and collaboration which exacerbate the issue of lack of speed of responsiveness. And since the current functional organization design of SCI is no longer efficient and as they pass from the collectivity stage to the Formalization stage of their organizational life Cycle the company will need to make drastic changes in order to succeed. Another issue that inhibits the speed of responsiveness is the lack of horizontal linkages implemented within the SCI organizational structure which reduces the amount of communication and coordination that can facilitate across divisions. There are currently too many divisions within an extremely bureaucratic organizational structure and Shoe Corporation Illinois is presently experiencing ‘symptoms of structural deficiency’. Primarily, every employee must report back to C.F. Allison which causes decision making at the upper level to be delayed and lacking in quality. This is demonstrated through Allison’s decision making in regards to approving shoe styles; as president Allison is constantly busy as a result “the company has lost a lot of money on bad judgement in styles-perhaps six or seven times in the last eighteen months.” In addition Allison is occasionally “unavailable to do his