Question 1

It is important to remember that when looking to create or even reorganize a company the managers involved must keep the mission, goals and objectives in mind. Richard Daft (2010) refers to mission, goals, objectives, and other factors of companies as their strategic intent or purpose. The company’s Strategic intent will help create the structural form of an organization that is best suited deal with the external environments such as opportunities and threats as well internal outcomes (both good and bad) of the chosen organizational design. How well a company manages to focus on its strategic intent will determine how effective or efficient they are. The focus of on strategic intent is done by formulating a strategy on how to achieve it. However they may be times when new strategies are needed due to environmental needs (internal or external) and as a result management must attempt to redesign or reorganize the organization (p. 58-61).

Traditional organizational structure exists when activities are grouped by common work throughout a company. Stephen Robbins (2002) explains this occurrence as departmentalization (p. 414). There is little collaboration between departments and the organization has a vertical hierarchy. Richard Daft (2010) explains that although this type of operation provides efficient operations, it does not work well in rapidly changing environments (p.31). This traditional organizational structure is what Triad Insurance Company of Indianapolis had used since its creation in 2005. The company’s rapidly changing environments (increase of employees, complexity of operations, and customer expectations) as well as lack of communication has several members of the leadership team looking to restructure the operation.