Following the appointment of a new Chief Executive, Drive plc is undergoing a period of restructuring.
Traditionally the business has been organised around two sites which are 45 miles apart.
Each site is headed by a Managing Director and also has senior managers for the production, sales, personnel, and research and development functions. Site A has a very stable workforce of 450 people, and Managing Director Mr Johnson has been in post for eight years. Site B employs 500 people and has a staff turnover of around 30 per cent per year. Mrs Haynes has been Managing Director for one year, having been recruited from a major competitor.
Both sites produce components for the motor industry - Site A concentrates on interior components such as door handles and headrests and Site B concentrates on exterior components such as fog lights and mirrors.
Staff costs are considerably higher than the average for the sector and the new Chief Executive is seeking to reduce these by combining the two senior management teams into one, based at a new head office between the sites. In addition, plans are being made to review employee benefits in order to identify where savings can be made. The Chief Executive has identified the need to change the culture of the organisation in order to achieve his goals of improved efficiency, and wants to introduce a team-based approach to working. He wants to increase the levels of motivation amongst the workforce, and to encourage them to generate new ways of working.
As Company Secretary you have been asked to produce a report to the Chief Executive dealing with the following questions:
a. Identifying one writer, what motivational theories could be put to practical use in the current situation?
b. In restructuring the functions of the business, what advice would you give about the most effective span of control for a manager? What are the benefits of a wide span of control.
c. What should the communication process with staff involve in order to achieve the necessary changes?
d. What would be the benefits of introducing a matrix style of organisation structure?