Company X is a software company, which focuses on developing software for small to medium enterprises. Right now, the company has a structure emphasizing skill development and technical knowledge. However, the managers of the company have recently realized that decision making is slowing down and quality of decisions is decreasing. To solve the structural deficiencies, they decided to take your opinion as an expert. You suggested managers change the departmentalization strategy so that the new structure would emphasize processes. Based on the information provided above, please answer the following questions a) What is the current departmentalization strategy of the company? b) What is the new departmentalization strategy you suggested and what will be the advantages of this strategy? c) What will be challenges or problems that can be faced by the managers when the organization used this new departmentalization strategy?

Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter10: Designing Organization Structure
Section: Chapter Questions
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Company X is a software company, which focuses on developing software for small to medium enterprises. Right now, the company has a structure emphasizing skill development and technical knowledge. However, the managers of the company have recently realized that decision making is slowing down and quality of decisions is decreasing. To solve the structural deficiencies, they decided to take your opinion as an expert. You suggested managers change the departmentalization strategy so that the new structure would emphasize processes. Based on the information provided above, please answer the following questions

a) What is the current departmentalization strategy of the company?

b) What is the new departmentalization strategy you suggested and what will be the advantages of this strategy?

c) What will be challenges or problems that can be faced by the managers when the organization used this new departmentalization strategy?

d) Overall, would you suggest organic or mechanic design to the company and why?

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