Team Exercise: THE CLUB ED EXERCISE

Purpose This exercise is designed to help you understand the issues to consider when designing organizations at

various stages of growth.

Materials Each student team should have several flip chart sheets or other means to draw and show the class

several organizational charts.

Instructions Teams receive up to four scenarios, one at a time in chronological sequence. For each scenario, teams

are given a fixed time $($e$.$g$.,15$ minutes$)$ to draw an organizational chart that best suits the firm in that scenario. The

first scenario is presented below. The exercise and debriefing require approximately $90$ minutes, although fewer

scenarios can reduce the time somewhat.

Step $1$: Students are placed in teams $($typically four or five people$).$

Step $2$: After reading Scenario #$1$ presented below, each team will design an organizational chart

$($departmentalization$)$ that is most appropriate for this situation. Students will describe the type of structure drawn

and explain why it is most appropriate. The structure should be drawn on a flip chart or using a software program

for others to see during later class discussion. The instructor will set a fixed time $($e$.$g$.,15$ minutes$)$ to complete this

task before the next scenario is presented.

Scenario #$1$: Determined to never suffer another cold Canadian winter, you secured venture capital funding for a new

resort business called Club Ed on a small Caribbean island. The resort is under construction and is scheduled to

open in less than one year. The resort will employ approximately $75$ staff $($most employed full$-$time$).$ Draw an

organizational chart that best suits the organization when it opens, and justify your decision.