Organizational Structure
There is one structural issue that will be examined. The hierarchical structure of CI is causing problems that affect the contingency factors most important to the CI organization including, Strategy, Sales cycle, and culture (Cengage, 2010). In the case study, Daly has assessed internal and external weaknesses and threats due to strategic direction.
The analysis reveals two internal threats to the organization that stem from the hierarchical organizational structure and communicating strategic goals and objectives (Oshagbemi & Gill, 2004). Without knowing what the goals for the company are, sales production and customer care has diminished.
Solution One Satisfaction Survey
One solution that supports restructuring the company from a hierarchy to a Matrix organization involves the sales team working with customers to develop and complete a customer satisfaction survey. Based on the response, goals will be addressed to improve business relationships, growth potential, profitability, and refocus on the customer.
Solution Two Transformation into a Matrix Organizational Structure
A second solution will be primarily for the leadership team at CI to meet with the entire workforce (management and sales employees) to develop a strategic business plan for restructuring the company into a Matrix organization (Bradford & Burke, 2005).
At present CI is a hierarchical organization that needs to consider a matrix structure vs. A top down approach that provides a more customer focused enterprise. The use of organizational development processes such as Six Sigma and a Balanced Scorecard can provide Daly with much needed direction of what is working for other top computer service firms in the industry (Greiner & Cummings, 2004, p. 377). By formulating a vision and mission that can be clearly shared with the entire organization, all members can take ownership of their respective work toward better performance (Oshagbemi & Gill, 2004, p. 93-97). A balanced scorecard will result in development of a strategic business plan with the assistance of all departments (finance, sales, business processes, OD) which will allow CI to dismantle the bureaucracy that paralyzes its communications and responsiveness (Oshagbemi & Gill, 2004, 93). Thereby improving its responsiveness both internally between departments and externally with the customer. Additional steps based on the solutions are pointed out and reviewed along with recommendations and a summarized conclusion of how to move forward.
2.0 Overview of the Organization
Computer Innovations (CI) manufactures electronic products such as printer, computer hardware and periphery equipment. The CEO Sarah Johnson has focused on expanding the company by acquisition of smaller businesses. The companies chosen have not always been the best suited for the hierarchical organization structure at Computer Innovations. In fact the most recent acquisition led to a major conflict of core competencies, this in turn led to the firing on the CEO. The new CEO, John Daly comes from a computer firm, Global Tech and has recognized the internal organization problems that have led to less than 30% communication between sales department and customers (Cengage, 2010). Problems that have slowed down the hiring process that takes 90 days due to the number of managers required to get approvals. The company lacks a common vision and mission and there appears to be no long-term strategic business plan in place with achievable goals and objectives designed to improve efficiency, increase sales productivity, and reduce costs company wide.
Hierarchical structure Advantages (Learnmanagement.com, 2012):
Lines of authority are clearly defined (Cengage, 2010).
Areas of responsibility are understood and controlled by management.
Employees understand managerial protocol due to micromanagement.
Employees are generally promoted from within the organization based on tenure.
Employees are told what their responsibilities are within their job descriptions.
CEO John Daly comes from a technical company therefore having experience in working with a computer-based organization of similar size and structure.
Computer Innovations is a global company and possibly an industry leader, therefore there are resource available in terms of talent, capital, and suppliers to make the necessary changes.
Daly recognizes internal problems within the sales department.
Daly is aware of problems with management structure.
Hierarchical structural disadvantages (Learnmanagement.com, 2012):
Response to customer is slow due to bureaucratic process in gaining authorization for changes. Authority kept at top levels of the organization.
Vertical communications that give employees little voice in making changes to day-to-day processes though they have the most knowledge and experience (Edwards & Gill, 2012, p. 25-50). A hierarchical structure has centralized authority and decision making (Cengage, 2010).
Communication barriers in sharing knowledge across departments and to the lower levels of the company to...
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