BUS Organizational Structures

The organizational structure that this company is currently using is in a state of complete disorganization. Originally, this company was organized into a functional structure that focuses on separating the departments into sections such as accounting, finance, marketing and to have each person serve their role and to handle a larger workload (Soomo, 6.11). Managers and project managers are not communicating with each other due to the fact of them not being distributed properly throughout their departments. Through a reorganization of the company, we can solve the issues of communication between each team and the organization. The planned reorganization method is to implement a combination of a divisional organization with a matrix organization. A divisional organization is, “each unique product or service the company is producing will have its department” (Soomo, 6.11). A matrix organization is, “[the] employees reporting to department managers are also pooled together to form project or product teams, and as a result, each person reports to a department manager as well as a project manager” (Soomo, 6.12). Through the combination of these two types of organizations, the company will now have more open lines of communication between the teams and the departments. Through the blend of these two organizations, the company will be allowed to grow with a structure that can be amended and molded to its needs and changes. These changes to the organizational structure will allow better communication between the teams but will also change how the teams are configured within each department. The two leading managers are the director of product and the director of service goods. Through the change of dynamics regarding the managers, it will allow a more efficient and clearer communication path for the company. The marketing team remains independent; however, the marketing manager works closely with the managers of the product and service departments. Through their communication, it allows both teams to start working on marketing ideas for current and future projects while incorporating the service team to assist in marketing the product as well. Before the marketing team only communicated with the CEO, leading to no communication between them and the rest of the teams. The same concept is applied to the information technology manager, who only spoke with the CEO and maintained an independent department. Through the new changes, they were incorporated into the project groups within both the product and service department. With this change, both groups can communicate and work together with the modification within its planning stages as well as its developmental stages if need be. Also, with their incorporation into the service department, they can assist with any problems that arise post-launch of the product to the public. For both the products and service departments, they both needed a complete overhaul of their formatting. Now each product group has a project manager that they report to and each product group now consists of a designer, QA specialist, and a developer. Originally, the data analysts were within the department of products. After the reformatting, they are now placed within the service department. Through this change, it allows the service group to be able to tackle the problem more efficiently than if the data analysts were in the product group, where they are not needed. An additional change that was made was to have the project managers communicate among one another to prevent any overlap of work as well as act as a bridge between product teams to help share ideas. Similarly, the service department is formatted with project managers talking to each other while sharing their ideas with an information technology specialist who leads the communication between the teams and project managers. These changes that were made will help in the communication as well as the efficiency of the company through the simplification of groups and the development of open communication between managers and teams. Before, the company was very tall, with one group reporting to one manager, reporting to a director. Now, several managers are all overseeing several groups gain a better idea and allow for communication between different teams. Through implementing the projects managers to lead the projects as opposed to one manager, it allows for a greater communication flow and the downsizing of teams, but the number of teams to rise, thus resulting in a more efficient work manner which leads to a higher potential of said teams. References Soomo Learning. (2020). Managing and leading in business. Retrieved November 29, 2020, from https://www.webtexts.com