3. PROBLEMS
INFORMALITY IN STRUCTURE.
NO FUNCTIONAL STRUCTURE.
BEHIND THE SCHEDULES.
NO FINANCIAL PLANNING.
INCREASING CUSTOMER COMPLAINTS.
INCREASED DEMAND.
The problem faced by apex corporation was that, which organizational structure should
apex adopt that would best fit their business needs ??
4. Problem with Circular Structure
• Employee were completely unfamiliar with the structure
• New recruits expected a more traditional organizational chart
• They also didn't’t know how their performance was evaluated
Horizontal structure
• employees didn't’t responds enthusiastically
• No hierarchical organization
Problem with Functional Structure
Natural tendency to create sub-functions within their team
Teams became polarized
Organizational politics came into existence
The source of authority was functional, not managerial expertise
5. AVAILABLE OPTIONS
Remain in divisional structure
Created 4 different vertical structure for easy communication.
Improved Accountability, budgeting and planning
Keeps focus on financial targets
Raise cost as separate division managers were to be hired
Adaptive Structure
Evolve organisation structure overtime
Adjusts to new demand of the market
Problematic for employees to understand the structure
6. Form a new Matrix Structure
Employees are grouped by both function and product in a matrix.
Take advantage of best parts of divisional and team based structure
Division of powers among managers.
Recommended Option
We recommend that Appex permanently use the divisional organizational structure.
This model is most similar to the standard vertical business model which has proven
itself to be effective. This model combines the benefits of different organizational
structures by creating small organizational divisions which create a balance between
the desired control of upper management and the desire for more organizational
freedom from lower level management.