Case Study Analysis Name Contents Executive Summary 3 Analysis of the Current Structure of the Organization 4 Reasons for the inadequacy of the Vertical Structure 6 The Solutions 8 Increased coordination between the employees 8 Integrated Value Chain 9 Quick Decision Making 9 Increased employee motivation 9 The Learning Organization 10 Systems Thinking 10 Personal Mastery 11 Mental Models 11 Shared Vision 12 Team Learning 12 Bibliography 13 Executive Summary The company Aquarius Advertising Agency is going through tough times that have posed serious questions on the viability of the current organizational structure of the company…
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Under such desperate circumstances, the company executives should move from the vertical organizational structure to the flat organizational structure. Under this system, the coordination between the employees will increase, the functional processes will get integrated and the organizational goals will get aligned with the individual goals. Hence, this will result in Aquarius agency turning into a learning organization that will foster increased employee empowerment and increased customer satisfaction. Analysis of the Current Structure of the Organization Presently, the company is running under the tall structure of organizational hierarchy. According to this structure, there are three comprehensive departments such as marketing, Operations and Accounts. These major departments are supported by 2 one men departments that are, Human Resource and Finance. This structure was a best fit for the organization previously since it created provision for specialized tasks, well defined guidelines for the employees, proper job description for each employee and a high power distance. Due to the present tall organizational structure, there are few teams in the company and functions are characterized by centralized decision making procedures. These features of the organizational structure enable the higher management to wield power and take decisions in the most professional and judicious way (Daft, 1991). However, the present system is also creating a big cloud of problems as the clientele gets involved and communication gaps begin to widen up. The miscommunication between the cross functional supervisors due to mismanaged communication networks has led to employees being constantly disgruntled by the current functioning of the organization. It is quite evident that the account executive is fed up of the constant direct communications between the clients and the specialists like those of marketing and operations. These direct meetings between the clients and the organizational specialists led these employees to trespass their domains of authority and make decisions without consulting their executives. Since this phenomenon is not considered appropriate under the implemented organizational structure, this created serious problems in the value chain of the company and in the coordination in the business functions. This not only perturbs the organizational setting but also hurts the company reputation as the customers are unable to receive their desired value on time (Daft, 2003). The high power distance also led to delayed decisions and lack of coordination between the various organizational entities. These problems ultimately led to extreme job dissatisfaction for the employees like the accounts executives. The limited domain of authority of individual employees resulting from high power distance also made functional problems for the company. The plethora of problems experienced by the organization ultimately led to disgruntled customer base which subsequently led to fewer sales. Under the vertical structure employed by
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