Question

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

Answer 1

1. Beyond the restrictions of formal structure, management should encourage employees to engage and socialise with one another through gatherings and outings. This allows everyone to interact and brings like-minded people closer together, resulting in a more delighted staff.
2. Management should also develop staff recommendation systems to implement and recognise good ideas. Communication lines should be kept open in order to promote a sense of belonging within the firm.
3. Management should attempt to distribute the organisational structure.
4. Textile machinery, such as embroidery, sequencing, and buttoning machines, is indicated as an area for business diversification.

The company will benefit from the following changes:

If informal connections are encouraged, employee's social needs will be met more effectively. This will increase their job satisfaction and offer them a sense of belonging within the business. Quick decision-making will also occur since prescribed lines of communication will not be followed, and faster dissemination of information will provide prompt feedback. Implementing employee suggestion systems will enhance motivation for employees who offer good proposals. This will also help reduce workforce turnover. Implementing decentralisation will also help.

All of the preceding will aid in achieving organisational goals and eliminating the shortcomings of formal structure.