Appex Corporation Case Write Up
What were the challenges Shikhar Ghosh faced when he joined Appex?
Appex Corporation was a rapidly growing business, with increasing employee strength and added project work. It had initially begun as a startup and transformed into an organization which needed a proper well-defined organizational structure. Shikhar Ghosh was recruited by Appex’s investors to provide the crucially needed control and structure to the organization. Major early issues recognized by Ghosh were
• Ghosh realized that the atmosphere at Appex had changed from “entrepreneurial” to chaotic because of structural issues due to quick expansion of Appex.
• Long term goals were not addressed and there was lack of financial planning. Many tasks
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• It provided clarity of responsibilities & authority across different functions.
• The structure succeeded in focusing the company on completing tasks.
• It accounted for a greater degree of control • Confusion in defining the functions and assignment of new management roles
• Politics came into existence and teams started becoming polarized
• Heads of the teams started creating sub -functions within their team - Organizational chart grew vertically & horizontally & managerial roles kept on increasing within sub -functions.
• Standards were being set by individuals rather than the company policy. Further, source of authority was functional & not managerial expertise
Product Teams The structure was made more product centric with product team managers assigned with the role of writing business plans for the products & integrating the functions. • The product teams co-existed with functional teams & there was no need of having the knowledge of each other’s responsibilities.
• Functional teams were informed about the product happenings on a daily
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• Product teams didn’t know the limits of their authority - decisions related to sales price, allocation of resources & prioritization of activities
Business Teams Business teams included representatives from senior management & had the authority to make decisions including those related to resource allocation & products. • The conflict of authority & resource allocation was resolved.
• The burden of final decision making at the corporate management level reduced • A lot of people for planning & counting rather than for revenue-producing.
• Lot of managerial levels & the infrastructure, hiring & training costs increased considerably.
• Customer focus diminished & people became concerned regarding internal processes rather than company-wide financial goals.
Divisional Structure Appex’s product could be divided into one of these two businesses. A separate Operations division could service both the businesses with utility functions. • Accountability, budgeting & planning were improved across the businesses.
• Employees could relate themselves to the divisions & there was a sense of cooperation. They now focused on meeting the financial
Alignment and collaboration between business and IT was increased as a result of a highly
No effective control and goal orientated leadership was visible. Nowhere during the four months did she ask for progress reports from the stakeholders, if she took any interest in the project and ask for progress reports, she would have seen that the project was behind schedule. No milestones were set to make sure that project goals were on track.
*Corporate structure & effective information management systems facilitated communication, as did close relationships with suppliers
Describe how your organisation obtains the co-operation of its employees through the contract of employment and employee involvement techniques.
Each division is operating independently with its own division manager. Also, each division’s performance had been judged on its profit and return on investment (ROI). The company policy of decentralizing responsibility and authority for all
- Lack of implementing the strategy to provide positive influence in the firm regarding the structure.
The key distinguishing features of Organization 2005 consist in the abolishment and reorganization of the Matrix structure around three interdependent organizations: Global Business Units (GBUs), Market Development Organizations (MDOs) and Global Business Services (GBS). Furthermore P&G implemented several policies that empowered executives in order to facilitate faster decision-making, which in turn should promote innovation and increased agility on the market.
Aside from educating a manager through formal training in managing an organization through change, there are many ongoing activities that will increase a manager's awareness and aid them in supporting a more complex organizational structure as it develops. A company's organizational structure is a road map of its communication patterns. A well-designed structure can also make it easier to identify inefficiencies and new problems as the organization grows. Reviewing the organizational structure on a regular basis will help ensure that the organization set up for optimal growth well into
* There should be division of segments under each head like marketing, logistics and administration team for the entire company.
Businesses have numerous key departments which keep the structure running appropriately and supports the business to build and embellish in all worldwide markets. This report will consider what the key departments do for the business, in addition, this report will enlighten the research procedure used and significant complications which have been encountered throughout.
It did so in order to better focus its resources on changing customer needs as well as emphasize its strengths in the market place. The organizational structure now consists of centralized engineering and marketing organizations. This way the company has the ability to prevent product and resource overlaps and more effectively allocate its resources to areas yielding optimum profitability. The engineering side has eleven technology groups with people heading multiple groups and reporting to one person who then reports to the CEO. The marketing side has one head who reports to the CEO as well.
Lack of project management clarity: the planning activity had lot of material but lacked content, clear action items and lack of consensus on the milestones. The difficulties in the project only increased with time and a more performance driven style would have kept things on track if introduced early on.
Once they analysed what were the main issues that led the company into that situation, two were the main problems. First of all, the product portfolio was unprofitable, more than the 94% (Breen 2013).
The connection that they can have can be very personal which they can use to treat the organization as a big family. Although these solutions may require expending costs, this is an investment that has high return that can offset the losses the organization is incurring due to the absences and unproductivity of their employees on its present condition.