Organization Design Activity

You have been hired to develop an organizational design for a company that has acquired a new start up company.

The company that has bought the start up is global, has been in business for 80 years, and has been using a mechanistic organizational design with narrow span of control. It uses many lines of line authority few staff authority. This organization deals mostly with retail and financial business. It has been slow to use technical and electronic communication and decision making.

The divisional structure is causing delays in developing new products and services.

The pandemic has hurt sales and incurred financial losses. Virtual business has not developed quickly.

The Start Up Company

The start up company has been in business for two years, uses a wide span of control , and organic decision making with few lines of authority. Employee empowerment and team work are encouraged. The company deals in software and has been very successful in creating software programs.

The business has been successful in the global market for its software programs for about six months. It thrives on virtual business.

The pandemic has helped this company.

Employees are not happy with the acquistion.

Solve the Problem

What "types" of organizational structures work? What types of the 7 structures would you recommend? Be specific.

How are you going to make the mechanistic and organic structure blend together? You don't want to lose the knowledge workers from the learning organization who function best in employee empowerment.

With the pandemic, are you encouraging more telecommuting?