Case Study: Club Chaos

Essay, 2003

10 Pages


Table of Contents


1. What is the structure of Club Chaos? How does each of the elements of structure at the Club Chaos contribute to the management problems at Club Chaos?

2. How might the Rational Decision Making Model be used in making changes at Club Chaos?

3. Using the theories and principles of management philosophies, describe and explain the management problems at Club Chaos

4. Referring to the related readings on 68-69 “Wanted: Good Managers”, does this article suggest that the Classical or Behavioral School is better suited to managing people?

5. Referring to the Related Readings on pages 101-102, “Should we make big bets in business?” explain what is the meaning of “making big bets in business.” Does this advice follow the view of the rational or non-rational decision making process?

Works Cited

Case Study: Club Chaos


Club Chaos is a non-profit, members only, exclusive country club. This elite club offers its members a variety of services including: a golf club, tennis, a plethora of dining services and much more. However, despite their extensive facilities and privileged members, Club Chaos is suffering from serious organizational challenges, which could lead to their utter demise. The answers to the questions following help analyze the situation further.

1. What is the structure of Club Chaos? How does each of the elements of structure at the Club Chaos contribute to the management problems at Club Chaos?

An effective and efficient organizational structure can be exactly the competitive edge a company needs to place it at the forefront of its industry. Employ an inefficient and/or ineffective organizational structure, and a company is destined to fail. A company’s organizational determines its productivity. It affects its profitability. In the end, organization structure is a management tool, to control differentiation and integration.

There are six typical organizational structure types that most companies can be categorized: functional, geographical, product, division, customer, and matrix. Functionally structured organizations offer several benefits. Most importantly, “it provides good control over personnel, since each employee has one and only one person to report to.” (“Functionally Structured”) This, in most cases, is the most efficient organizational structure.

Club Chaos, however, is a divisional type organizational structure. “Divisional structure extends product structure by organizing around product groups.” (Kukalis) This type of structure relies heavily on upper level management at each division to make effective management decisions.

Club Chaos has been divided into seven divisions overseen by Divisional Managers, and then by Clubhouse Manager Rocco. This structure is ineffective, especially given the leadership in these pivotal managerial roles. Rocco’s lack of business experience and education has taken a good system and ruined it. His actions have driven away key managers, such as Cathy, and replaced them with unqualified candidates who simply cannot perform at the level needed to keep the organization running smoothly.

2. How might the Rational Decision Making Model be used in making changes at Club Chaos?

To take benefit from the Rational Decision Making Model, Club Chaos management needs to utilize all six steps of the process. These steps include:

1. Recognize/Define the problem
2. Develop alternatives to the problem
3. Evaluate the alternatives and fully understand the consequences of each
4. Choose which alternative is the best for their situation
5. Implement the alternative
6. Evaluate the effectiveness of their chosen solution (Michli)

Club Chaos has to first define where there problem areas are. This may include acknowledging that the two most senior management members, Antonio and Rocco, simply do not have the experience and education necessary to run a large organization, such as Club Chaos. This may also include acknowledging that simply slashing costs is not always the most effective ways to increase profitability, and, as they’ve experienced, can be counter-productive to their efforts, actual reducing sales and thereby reducing profits.


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Case Study: Club Chaos
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Kimberly Wylie (Author), 2003, Case Study: Club Chaos, Munich, GRIN Verlag,


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