Appex Problem Essay

2039 Words9 Pages
Evaluate the importance of each of the structural changes Shikhar Ghosh implemented. How important were they? What problems did each ne w structure address? What problems, in turn, did it create? As the company was rapidly growing and there was a need for organizational structure change, Ghosh started by implementing innovative structures. There were a series of problems and limitations w hich followed after each structural change in the organization and hence Ghosh kept on implementing new structures to address the issues at each level. Following are the stages of Appex Corporation’s structural changes done by Ghosh: I) Innovative Structures a) Circular Structure – Concurrent circles with inner most circle containing the senior executives followed by the functional managers and employees respectively. The environment around the circle represented the Appex’s customers. Importance: It was a non-hierarchical structure with continuous and free flow of information within the organization and with the environment (customers) Problems Addressed: 1. Introduction of a flat structure with defined roles and less chaotic atmosphere 2. Improvement in coordination, integration and planning over the earlier Problems Created or persistent: 1. Employees could not relate to the unfamiliar circular structure – New hires couldn’t understand how they fit in organization, with whom to talk to get things done, how the performance was evaluated, what was the power structure and who had authority to make which decisions. 2. There was a mentality developed that the customer was the enemy 3. It was aligned with responsiveness but had no accountability for planning and the task s that required planning were not get done b) Horizontal Structure – The traditional, vertical organization chart turned on its side Importance:
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