Organization Structure simulation

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OTA # 105428

Organization Structure simulation

Organizational structure is the division of labor and the patterns of coordination, communication, workflow, and formal power that guide organizational activities. An organization's structure reflects the company's culture and power relationships and can establish new communication patterns and align employee behavior with the company's mission, vision and goals. The organizational structure enables effective communication and smooth workflow, but organizational culture is its underpinning. Organizational culture is the basic pattern of shared assumptions, values and beliefs that govern behavior within a particular organization. Organizational culture is a deeply embedded form of social control. It is the social glue that bonds people together and makes them feel part of the organizational experience. The culture of an organization should be compatible with its structure to ensure organizational success. Many teams fail because the organizational structure does not support them. Teams work better when there are few layers of management and teams are given autonomy and responsibility for their work (McShane & Von Glinow, 2004). Understanding and addressing the need for alignment of organizational structure and culture with a company's mission, vision and goals will help business leaders to craft effective strategies for successful change management, enabling them to deal with resistance to change effectively thus increasing the productivity of their organizations. This paper will explore several structures in organization design and organization design choices with emphasis on those that will best suit Synergetic Solutions, the company in the Organization Structure simulation.

Company Background

Synergetic Solutions is an information technology (IT) solutions company in the business of system integration?assembling and reselling leading computers brands. It has 300 employees most of whom are in the sales and service departments in five locations throughout the East Coast. Most of Synergetic's employees have only basic computer assembling and troubleshooting skills, while a few higher-skilled individuals work as the specialists. Two years ago when the system integration market was suffering from stagnation Harold Redd, the Chief Executive Officer (CEO) of Synergetic , pursued some ventures in the network solutions business of designing and implementing complex computing networks. He had four of Synergetic's brightest engineers trained and certified on networking technologies, a tactic which proved very profitable for the company. Recently Synergetic won a contract worth $1.2 million for designing a network, and contracts worth $5 million are already on the horizon. As a result, the networking solution business is now 20% of the total revenues of the company, which currently stand at $6 million. Encouraged by the early success of this tactic, Harold Redd has made an important strategic decision to focus on the networking solutions business and raise its revenues to 80% of total sales, which are targeted at $12 million at the end of the next nine months. He has also set quarterly growth targets for revenue and measures of employee involvement such as productivity and absenteeism, based on industry ...