Appex Corp. Essay

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MEM 6970 Engineering Management Problems
Assignment 2
Ileana Rodriguez
January 27, 2013
“Appex Corp.”
1. What were the challenges that Appex CEO Shikhar Ghosh faced when he joined Appex? Why were “structure and control” deemed necessary? Following were the challenges which Ghosh faced when he joined Appex: * The organization was initially small and the decision-making was centralized among the key executives. All other employees were only involved in developing and selling products. * People had expertise in definite sectors but everybody did nothing. * There was no functional structure, roles were not defined and there was no job description * As the market was growing, more projects poured in and people worked …show more content…

Problems Addressed:
1. It provided clarity of responsibilities and authority across different functions
2. The structure succeeded in focusing the company on completing tasks
3. It accounted for a greater degree of control
Problems Created or persistent:
1. Confusion in defining the functions - How many distinct functions should be created, should marketing be a part of sales, should there be separate finance, human resource and accounting teams, etc.
2. Confusion in assigning new management roles - Who should head each of the teams, could the same management personnel handle the responsibilities with the rapid growth of company, etc.
3. Horizontal reporting structure of the functions displeased the Board of Directors. The board wanted a traditional hierarchical structure.
4. Politics came into existence - People became concerned about their titles and desk locations
5. Heads of the teams started creating sub -functions within their team - Organizational chart grew vertically and horizontally and managerial roles kept on increasing within sub -functions.
6. Teams became polarized - The distinction between various departments inhibited working relationships and involvements. The cost of resource allocation separately to the teams increased.
7. Role of personalities came in

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