Bus2A

Question 2a

Over the years, Mechmar International Limited has gradually become more bureaucratic and mechanistic. As a result of the current organizational structure and design, the level of coordination and integration among the different departments and divisions has been low. Besides, decision making has been quite slow and the communication tends to be one-way.

There is a marked tendency for every department or division to develop its own power base. People work independently and are not aware of what other people are doing.

We will have to create flexible structures to increase coordination and integrate all the different departments and divisions by using the team approach. The team approach is probably the most widespread trend in departmentalization. The vertical chain of command is a powerful means of control, but passing all decisions up the hierarchy takes too long and keeps responsibility at the top. Managers can delegate authority, push responsibilities to lower levels and be more flexible and responsive in the competitive global environment.

There are 2 approach of using teams in organizations is through cross-functional teams which consist of employees from various functional departments, responsible to meet as a team and resolve mutual problems. Team members report to their functional departments, but also to the team. These teams provide needed horizontal coordination to complement existing functional or divisional structures. The second approach is to use permanent teams, groups of employees brought together in a way similar to a formal department. Emphasis is on horizontal communication and information sharing because representatives from all functions coordinate to complete a specific task. Authority is pushed down to lower levels, and front-line employees are given the freedom to make decisions and take actions on their own.

With a team-based structure, the entire organization is made up of horizontal teams that coordinate...