Organizational Structure and Effectiveness Having Case Study

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As such, the competition with potentially more efficient internal environments are in a better position than Airstar.

As a solution, Robinson's six principles are mainly directed towards better focus in terms of task assignments and internal structure. Communication should however not be overlooked in determining solutions for Airstar, Inc.

Recommendations

Generally, Robinson's principles appear to focus on internal changes that would provide Airstar with a better position from which to handle external environmental changes. Concomitantly, Morgan should consider how internal structural factors relate to the six principles. Because of the long lifetime of the company, for example, formalization in terms of written rules and regulations seems to be lacking. Communication is an important factor in this as well.

It is recommended that Airstar, Inc. begins its internal transformation process by creating a list of recommended rules, regulations and policies. It is suggested that these initially be communicated in writing, providing employees and managers with the opportunity to comment. Meetings can then be held to discuss the comments, after which implementation takes place. Before the specialization process, it is recommended that the company creates a mission and vision statement, a number of goals for the future that relate to these, and strategies to reach these goals. This will set the stage for specialization.

As per Robinson's recommendation, the various tasks to reach the above-mentioned goals can then be assigned to appropriate personnel members to avoid the overlapping that has occurred as a result of the changing environment.

Furthermore, the external environment needs to be monitored on a continual basis so that necessary responses can be implemented in a timely manner. This monitoring process can also be assigned to specific personnel members, who can communicate with top management via meetings or writing such as email.

A further recommendation is that the hierarchy of authority should be established and streamlined according to the variety of strategies and tasks within the company.

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Managers and divisions, according to Robinson, should be kept to a minimum. This is a sound principle. The structure of the company should be as simple as possible in order to focus on goals rather than on attempting to manage personnel members and their many duties.

Finally, inter-departmental and internal communication among personnel and management is a very important element of sound business principles. Personnel members should feel comfortable to share not only successes and praise, but also problems and concerns with managers. Concomitantly, management should be willing to listen to personnel members and seriously consider any suggestions before either accepting or rejecting them. Strategies such as prizes and rewards could also be implemented to encourage suggestions and raise productivity and motivation.

Conclusion

Airstar, Inc. has stood the test of time, proven by the fact that it is still in existence and still retains a fairly sizeable, although somewhat diminished, customer base. I believe the company has the potential to revive itself with internal structural changes, as recommended above. The president's attitude is very positive towards implementing changes for the benefit of his company, which is a good sign. The fact that he hired a consultant and is willing to implement suggestions shows that he is serious about bringing his company up-to-date with the external environment. It is however important that Morgan, or even the entire management team, does not make these decisions on an isolated basis, but that employees should be included in implementing some of the changes. At all times, employees should be encouraged to communicate their ideas. This will benefit not only the business, but also the….....

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