"Ladies and gentlemen, I called you together because I feel that our problems of coordination are getting more difficult," said the managing director (MD). Assembled in his office were the company's directors for sales, manufacturing, engineering, finance and human resources.

"With six product lines made and sold nationwide, I'm not sure we have the most efficient form of organization," the MD continued. "It seems that I spend most of my time ironing out problems among you."

"Well," commented the director of finance, "this form of organization has served us well up to now. It looks like we should be able to work out any problems among our departments without too much trouble."

"I know that you're all trying your best," said the MD. "It's just that we've grown a lot in the last five years. Maybe our organization structure could stand an upgrading. I'd like some suggestions for making it more effective."

Discussion

• Construct a current organisation chart for the firm's first two organization levels. What kind of organization structure is this?
• Redraw the chart as you think it should be, and a memo to the company's MD justifying your recommendation.