he case:
Sorbet pvt Ltd is an integrated engineering services and
manufacturing company operating in Pakistan and Middle East. Company’s
unique strengths enabled them to provide integrated package of services
encompassing engineering, procurement, manufacturing, construction, and
commissioning & maintenance projects. The organizational chart shows
a typical structure in a commercial organization. Sorbet functional
areas include accounts, projects, marketing, human resources (HR),
information systems (IS) and operations. Like other functional areas,
the accounts department has three layers of management
e.g. a director, a manager and three assistants. The accounts manager,
therefore, has a span of control of three as he directly supervises
three assistants.
Sorbet is currently facing the communication
problem in its employees as it takes a long time for information to pass
up and down the chain of command. Structure of organization enables top
management to have a tight control over its subordinates. Those at the top of the management
layer have more authority than those at lower end. Everybody in the
organization knows their place in the organization and has clear roles
and responsibilities.
Point to ponder:
Is the existing organization’s structure appropriate? If not, suggest appropriate organizational structure that management can design. Give logical reasoning to support your answer.
Solution: The
Current structure of the sorbet pvt Ltd is functional structure , which
is not appropriate. The appropriate organizational structure for sorbet
pvt Ltd should be MATRIX structure.
Matrix structures have following advantages.
