Question

According to the following article?Is mechanical or more organic structure suitable for company A?why?

Both A and B are two large sales companies, and B was acquired by Company A due to poor management. Both companies have a similar organizational structure - function-based design.However, after the acquisition of the new company, it suddenly increased a lot of shops and employees.After the completion of the acquisition of the new company, get an increase of many chain stores and a new Internet sector. In order to integrate these new businesses, the post-acquisition organizational structure must change. Now, the two companies that merged together became the largest sellers. Performance is gradually increasing. Although the company's merger has challenges, most of them have great confidence in the company's managers.

Answer 1

Organic structure being more flexible s more suitable for company A. It is given that there has been sudden increase in the number of shops and employees after acquiring company B. In addition, number of chain stores also increased. Keeping all these in mind, it is better if the company A adopts an organic structure. This will give a more decentralized approach where decisions can be taken quickly. In addition, since the number of stores and shops is increasing, employees will be needed to cooperate and coordinate with each other in performing various functions rather than specializing in just one function. This will reduce the time taken for completion of tasks. After a few months of following the organic structure, the company can shift to mechanical structure only if it sees the need for it. This shift will not be a problem since the companies already followed functional organizational structure in the past.