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APPEX CIS 410-77 Jacob M. Rutledge
Recommendation: It is my recommendation that APPEX had implemented a matrix type management structure.
Introduction: APPEX Corporation (APPEX) was formed in 1986 from the merger of itself and a consulting firm Lunayach Communications Consultants. At this time, APPEX had only been founded 2 years ago and was still manageable, although management had only loose control by choice. In 1998, APPEX employed a manageable 25 people and brought in 2 million dollars in revenue. According to the case, only 2 years later it was deemed as the fasted growing high technology company in the US. Unfortunately, this status was just the beginning of the end for APPEX because of a lack of effective
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I also deduct that there were “people issues” within the corporation. Like al companies, employees like to know what is going on and depending on the situation, may even have input that is valuable to the company’s success. Because of all the changes and people movement within APPEX, there was not a well known flow of information through management. This is another result of the broken management structure.
Situations like this are a breeding ground for false information and distrust between the employees and the company, leading to employee dissent.
The Management: Upper management was fully aware that there was a problem within the organization structure, but was unable to spend ample time dealing with it in part due to the constant “firefighting”. In essence, they dug their own hole and never got a chance to climb their way out. According to Morgan in the book Images of Organization, there are 5 simple principles that management could have used to “shape up” the organization. 1) Shift the responsibility of the organization of work from the worker to the manager. The employees were never fully aware of what needed to be done or who was working on what. There needed to be a central source or organization. 2) Use
Scientific Methods to determine the most efficient ways of doing work. APPEX could
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