Question

Maximus Incorporated with HQ in Mumbai has been a phenomenal company with major market share in electronics products (Switches, Wires & MCB). It is very traditional in nature with a promoter driven structure and all the products are being overseen by one President. However over the years its market share has been declining and customer complaints have been increasing. There are hardly any new products being introduced and as a result of which stellar growth that the company enjoyed has now reduced over the last three years. During business reviews it is not common to hear comments like I don’t have enough people, design team is too busy, not enough budget, productions slot are full etc. Ownership of serving customers are not clear among different people who manage the three products.

Q1. What kind of organization structure would you propose for better strategy execution, stating the valid reasons?

Q2. How can new product introduction be smoothed out? Explain this using any conflict resolution methodology. (note that, not any theory is expected of conflict resolution, hence keep your answer focused on idea of new product introduction)

Q3. In the above situation for new product development how can decision making in various teams be more effective with focus on end results? Please correlate the technique you choose with respect to (a)potential for interpersonal conflict (b)Cost (c)Number (d)Quality of ideas. Use Low/Medium/High.

Answer 1

Explanation:-

1.

This crisis is because, a lot of people are handling a lot of things, like no clarity about who would serve customers. Here, the organization can be structured as a functional org structure, where employees are organized according to their skills and function in a company. So, functions can be marketing, HR, finance, etc. This way people would know where to look up for the solution.Also, if the number of products is categorized like switches, wires, and MCB, then the divisional structure would be better. Where each division has its own resources, like IT team, sales, marketing, etc. So, one division can be for switches, one for MCB, etc. This way each division can develop itself with new products.

2.

In the functional organizational type, the product introduction can be smoothed by cooperation, where each function cooperates in a managed way to produce and market a product.While in divisional it would be avoiding style, as one division work would be different than others.

3.

Decision can be better taken to ensure the smooth introduction by having an arbitrator. Thus, after the discussion, the leader of the team would take the decision. So, hierarchy is important here.Here the potential for interpersonal conflict would be low.The cost of decision making would also be low.The quality of ideas would be low as people go for social loafing as the decision would be final from the leader.The number of the decision taken can be medium to high, as less interpersonal conflict would be there.

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