Super LLC which basically manufactures consumer products decided to produce additional type of products which are cosmetics and health care products. The company functions were mainly divided into various functions like Purchase, Production, Marketing, Finance, Quality Control and Human Resources. Each section is headed by a Manager and employees are grouped as per their role. This type of structure will ensure that employees are making use of their skills effectively. This organizational structure was enough to design similar groups and related jobs together. They continue with same type of structure without considering the new decision. Unfortunately, Health Care production failed and affected the production of all product types. Reasons identified for the failure includes poor communication and lack of understanding across the units. This made the operations more complicated and the management could not easily understand due to various technicalities. Moreover workers were confused by a number of new instructions from different service heads. This created imbalance because of the new change in production department which resulted in problems that required the management to reconsider the new decisions and think of restructuring the business. The management then decided to redesign the structure which can accommodate separate business units. They also considered the structure should be self-contained as it will develop expertise related to the product lines. Questions a)Identify and explain the organizational structure type followed by Super LLC in the beginning; Explain its drawbacks:(3 marks) b)Suggest a new organization structure type that would help the company to successfully operate with the new change; Justify your answer:(4 marks) c)Draw the new organizational chart for this company based on your answer for (b):(3 marks)
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Super LLC which basically manufactures consumer products decided to produce additional type of products which are cosmetics and health care products. The company functions were mainly divided into various functions like Purchase, Production, Marketing, Finance, Quality Control and Human Resources. Each section is headed by a Manager and employees are grouped as per their role. This type of structure will ensure that employees are making use of their skills effectively. This organizational structure was enough to design similar groups and related jobs together. They continue with same type of structure without considering the new decision. Unfortunately, Health Care production failed and affected the production of all product types.
Reasons identified for the failure includes poor communication and lack of understanding across the units. This made the operations more complicated and the management could not easily understand due to various technicalities. Moreover workers were confused by a number of new instructions from different service heads. This created imbalance because of the new change in production department which resulted in problems that required the management to reconsider the new decisions and think of restructuring the business. The management then decided to redesign the structure which can accommodate separate business units. They also considered the structure should be self-contained as it will develop expertise related to the product lines.
Questions
a)Identify and explain the organizational structure type followed by Super LLC in the beginning; Explain its drawbacks:(3 marks)
b)Suggest a new organization structure type that would help the company to successfully operate with the new change; Justify your answer:(4 marks)
c)Draw the new organizational chart for this company based on your answer for (b):(3 marks)
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