Mr. Tan Eng Lee’s property development company, Alan Construction Private is involved in numerous property development...

Mr. Tan Eng Lee’s property development company, Alan Construction Private is involved in numerous property development projects in Malaysia. He thinks that the current functional based organizational structure is not working well. Alan Construction private is involved in a condominium project in AUSTRALIA, a housing project in ENGLAND, a shopping mall project in AMERICA and a business center project in AFRICA.

He called for a meeting with the heads of department for Human Resource, Administration and Finance , ICT, Warehouse and Procurement and Engineering to discuss how best to re-structure their organization and to discuss the advantages and disadvantages of the new structure.

(a) Based on the information provided above, recommend a suitable form of organization structure that would benefit Alan Construction Private. (You need to provide a drawing of the structure).

(b) What are the advantages and disadvantages of the new structure? (10marks)

Expert Solution

The Above organizational chart for the Organizational structure which is designed according to the geographic presence of the company. Here the main operation is in the country of Malasia, so we consider the companies head quarters in Malasia. The malaysian operation comes under one unit and reports to the Head quarters, i,e, the functions of Human Resources, Financce , ICT warehouse and procuremtn and engineering etc. the same structure is designed for all the other locations, (Countries) and reporting to the Head Quarters at Malaysisa.

The Advantages are as follows:

a. Head Quarters will have direct involvement in each country where it operates.

b. The top management / The head quarters can focus more on their business in the operation country.

c. Head quarters will have more control.

The dis advantages is the following.

a. The different geographic conditions. ie, the facilities avaliable in the developed countries will not be available in developing or under developed countries.

b. The technical and other infrastructure requirements, i.e, the IT framework and softwares etc.

c. Cost constraints.

ekkarill92 answered 2 years ago

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