I am a new manager for a failing division in a company - Assignment Example

To optimize the utility of the human capital asset business organizations must have effective communication among its employees. An important goal of all business entities is to maximize shareholder’s wealth. Introduction Sometimes organizations have business divisions that struggle. These divisions fail because of operational problems that are inhibiting the division from becoming efficient. Some of the problems the organization faces are outdated product lines, loss of market share, adversarial interdepartmental communication, and fierce competition for corporate funding.

This paper discusses the main problems the organization is facing. Organizational structures are discussed in order to select the optimum organizational structure for the company. Suggestions are provided to help the transitional process between the old and new organizational structure. 1. The consumer marketplace has become extremely competitive due to the globalization movement. Corporations must use innovation to achieve success since it is imperative to differentiate your product to stand out from the competition.

Outdated product lines are a problem that can devastate a company. For instance during the past two decades the American car industry was not able to compete with Japanese manufacturers because the car models the Big Three were offering were outdated based on the consumer needs. The higher fuel prices increased the demand for fuel efficient vehicles. Outdated product lines are not attractive items. The sales of the corporation will decrease as a consequence of outdated product lines. Adversarial communication is an undesirable organizational problem.

The employees of a company must display good communication skills when dealing with internal and external stakeholders. Three important stakeholder groups are employees, investors, and lenders (Tutor2u, 2011). Tensions associated with communication can hurt employee morale and reduce productivity. The resources of an organization should be shared among the different profit centers. Fierce competition for funding is a problem because it can increase the interest costs to obtain capital. Under those conditions many small businesses are denied access to credit.

Battle over the resources of a firm can lead to conflict. 2. There are different types of organizational structures that companies can use to run a business. Five types of organizational structures are matrix, functional, product, customer, and geographic (Patricia, 2002). Matrix organizations utilize teamwork and group projects a lot. Functional organizations are the most often utilized business structure. The customer structure is used by small firms that have a short list of customers where each customer generates the company a lot of money.

The company has to change its organizational structure and fix its internal problems. I think that due to the lack of innovation demonstrated by the firm the best option is to choose a matrix organizational structure. 3. The old company must perform a complete overhaul. All the old divisions are going to be dissolved. The old divisional managers will become project managers. A new breed of managers will be recruited to lead new team formations. An emphasis will be place on R&D projects to create new ideas for new products and services.

The old communication hurdles and employee conflicts will not impact the firm as much since the matrix structure will give the firm new life. 4. The external