You are on page 1of 4

1. What were the challenges Shikhar Ghosh faced when he joined Appex?

Appex corporation was spending cash quickly and too haphazardly without
monitoring its expenses. The atmosphere was changing from entrepreneurial to
chaotic. The employees came when they felt like coming. For instance, the customer
service people turned up at 10:00 am while they were supposed to be present by
8:00 am. There was no development or future planning. There was only “fire-
fighting” with employees reacting to only the crisis that happened on a day to day
basis. Appex had started to fall behind schedule and to miss installation dates. The
company also experienced failures in product development. There was no financial
planning and all planning seemed useless. Many customers had complained of not
receiving technical assistance. Now the major challenge was to create control and
structure that would help resolve the above challenges. The key problem facing
Ghosh upon arriving at Appex is the chaotic condition of the company’s current
organizational structure. Appex started out with a tight knit group of employees that
could easily adjust to changes and solve problems rapidly. As Appex grew and new
employees were hired, the former business structure began to fail. New employees
did not have clear cut job responsibilities and the overall company had no formal
communication structure.

2. Evaluate the importance of each of the structural changes Shikhar Ghosh
implemented. How important were they?

Structure Circular Horizontal Hierarchical, Divisional
type Structure Structure Functional Structure
Importance A non- An A level of The previous
of hierarchical organization control was structure
structural organization which was needed to increased the
change in which still flat but add bureaucratic
information with a accountability costs without
flowed freely structure and a sense increasing the
and that of order. bottom line of
continuously focused on the company
with the planning for As the
organization the future. company was
and also in a growth
between the phase a sense
organization of hierarchy
and is required.

the distinction between engineering and operation. that is building a system and operating it did not exist. The company Improved addressed information hierarchical focused on accountability. for example. 3. Problems The issue of A non. planning. flow was team completing budgeting and addressed oriented tasks. What were the advantages and disadvantages of each new structure implemented by Shikhar Ghosh? 1. DISADVANTAGE-  By creating sub-functional team within a functional team. 2. capabilities divisions.Fast and Free flow of information within the org and btw the org and its environment. while structure allowing the with focus The Increased organisation on long company’s cooperation to retain its term basic within flexibility. the team became polarized. CIRCULAR STRUCTURE ADVANTAGE . DISADVANTAGES-  Employees could not relate to this structure  New hire was unfamiliar with this structure they did not know the power structure of the organisation  Too customer centric  Lack the guidelines regarding evaluating the performances and making plans for the task accomplishment. The operation team restricted the involvement of the engineering team in their functions which . improved. planning. FUNCTIONAL STRUCTURE ADVANTAGE-  Dividing the entire work of the organisation into different functions and teams  Better co-ordination between the teams  Proper distribution of work within the organization.

and planning.  Lacked customer focus. However. What would you have done in Shikhar’s place? Were all the changes in structure necessary? How would you address the challenges Shikhar is facing towards the end of the case? The divisional structure has presented some advantages to Appex. but now once acquired by EDS. 4. Employees are grouped by both function and product in a matrix and frequently teams of employees will be assigned to a project to accomplish a specific goal. for instance this structure improved accountability. DISADVANTAGE-  Inappropriate decision regarding resource allocation. standards were set according to individuals rather than the company policies.  Lack of standardization of work. Implement a matrix structure: Similar in some ways to the divisional structure. This is so because it was no longer an independent company but was rather a division of a huge hierarchical bureaucratic organization. Since Ghosh had followed regular periodic changes in the structure of Appex Corporation (Greiner’s model as it passed through several stages of growth strategies) to suit the need of a growing entrepreneurial organization.  Difficulty in measuring the managerial competences. & resource allocation.  Lack of control over all the resources. Institutional environment should be implemented in the organization that govern the behaviour of the employees of organization. Coordination and Synergy Achievement: Appex needs time to reshuffle its vision and structure slowly and steadily in a way that it can adapt the best practices of EDS .  Lack of well-defined source of authority. Shikhar should go for Matrix structure. DIVISONAL STRUCTURE- ADVANTAGES-  Well defined structure of work within all the departments. Appex must realign its structure. a matrix structure can benefit from the functional divisions formed in the divisional structure but also supplement these divisions with divisions based on products as well. thus more money was spend on development and operation than before. budgeting.  Poor flow of information. earlier was done jointly. So the challenges faced by Appex can be addressed by: Clarity of Direction and Delegation: Appex employees may clearly understand what is line of hierarchy and what are their roles and responsibilities under the new takeover.  Better communication between the divisions of the organisation. This form of a matrix structure is one in which a project manager is assigned to oversee projects and these project managers must share power with the functional managers who are the normal chain of command.  Fast and effective flow of information.  Ego clashes.

but retain its core competencies. Representation of EDS in divisions of Appex: Executive senior management of EDS should become a part of the divisional teams of Appex so that they can understand the working of Appex and accordingly mould Appex towards the practices of EDS. Hence to sustain innovation and product development capability of the employees of Appex. Subsidiary to Integration: Ghosh must consider every division’s operation once again to ensure that Appex as a whole continues its growth rate and does not just remain a subsidiary but becomes an integral part of EDS. Appex employees have enjoyed independence in decision making (to certain extent). Morale Boosting by Increased Compensation: As so far. . Ghosh must negotiate with EDS to increase compensation for Appex employees and organize regular interactive meetings to build an effective communication pathway between EDS and Appex.