Question

You are part of a consultant team hired to improve the VVCS Company’s organizational structure which has communication and coordination lapses. This company actual organizational design is of a more mechanistic nature and is characterized by:

- a very high level of official rules, regulations, and procedures;

- almost all decisions are made at the top levels of the organization;

- there is a high homogeneous basis of departmentalization;

- there is a very clearly defined chain of command; - the jobs are narrowly controlled;

- each job requires specific and unique expertise.

a) What type of organizational structure fits the actual described features?b) If the company desires to avoid silos and to have a mix of horizontal and vertical integration with a more functional/product or product/region lines of formal authority that allows them to work more cohesively, what would be the recommended new organizational structure?

Answer 1

A) The current organisational structure that fits the current structure of the company as depicted by the features presented is the "Hierarchical organizational structure" :

It follows a lean structure where authority , tasks and roles comes from top of the mangement .
The hierarchical structure involves the flow of information from top to bottom and concentration of powers mostly at the top with least delegation. The authoritative nature and strict rules and regulations are followed in hierarchial structure where the roles and responsibilities are distributed in such a manner that the superior , subordinate relationship comes into being, where each subordinate needs to report to his immediate superior and so on. The chain of command is that s followed and breaking this chain is prohibited unless certain emergency arises.
The hierarchical syructure is characterised by supervision, direction, instruction and strict rules.
Departmentalisation is done and each deptt is allocated set of responsibilities takes place with a targets set.
Thus all the features of hierarchical organization structure match the features of current structure of the said organization as mentioned above. Thus hierarchical will be most suitable currently.

B) The new recommended organisational structure will be the matrix structure.
Matrix organisational structure is well suited for handling complexities and issues that often arise due to large scale of operations and helps to overcome the problems due to lapses of communication and coordination.
The matrix structure will be most suitable in order to bring cohesiveness, collaboration, team work and coordination as aimed by the VVCS.
As Matric structure is suitable for more complex and integrated activities thus it will also be appropriate for Vertical and horizontal integration . It relects how to carry efficiently the tasks , processes and presentations of thevcompany.
As the name suggests the reporting relationships are set up like a grid or a matrix which results in cooperation with two reporting managers i.e a functional manager and a Product manager, So that each areas recieves attention equally inorder to addresss the deficient areas
Individuals perform the tasks and complete projects usually in teams.

Dear student i hope that i explained well.

Good luck and sorry for any typing mistakes

God bless.