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Appex Corporation

The document discusses the transition from an informal structure at a company to a more formal organizational structure. The informal structure had advantages like close employee interaction and responsiveness but led to increased workload, lack of accountability, and redundant work. The new structure aimed to create information flow while maintaining informality, with inner and outer circles, but employees could not relate to it and it did not support planning.

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Arka Biswas
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762 views4 pages

Appex Corporation

The document discusses the transition from an informal structure at a company to a more formal organizational structure. The informal structure had advantages like close employee interaction and responsiveness but led to increased workload, lack of accountability, and redundant work. The new structure aimed to create information flow while maintaining informality, with inner and outer circles, but employees could not relate to it and it did not support planning.

Uploaded by

Arka Biswas
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Advantages

Informal and fluid Close interaction between focussed, committed and hardworking employees Responsive to consumers needs Things got done cheaply

Disadvantages
Employees working on more projects as company grew Increased workload No accountability No reporting structure Reduced quality of customer service Redundancy in operations different employees doing same work No financial planning
Fire fighting mentality

WHY THE TRANSITION?


Sharply declining productivity Decision regarding payment of employees No clarity about who should attend which meetings in the initial structure Accountability required

FEATURES:
Aimed at creating information flow while maintaining the informal structure Inner circle had the senior managers Outer circle had the functional managers and their employees Customers formed the outer environment

ADVANTAGES:
Free flow of information Continuous flow of information Non hierarchical as the previous structure Responsive

DISADVANTAGES:
Employees could not relate New hires confused about delegation of power and their performance evaluation Did not answer any questions or achieve anything Only responsive did not provide for planning

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