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CASE ANALYSIS S-S technologies inc.

(D) Organizational Design

M Saad Shaukat MBA after BBA III 25th, Sep 2012


S-S Technologies Inc. BACKGROUND: Acquisition:

SS Technologies Inc., a 100% Canadian-owned Company was bought by Rick Brock-CEO and Keith Pritchard- President, in 1992. Previously, the same business was operated as a division of SutherlandSchultz Limited and Rick Brock was its president.

Organizational Dilemma:
The company was growing rapidly and in the past three years it had grown at an average of 33%. Thus, there was an exigent requirement of an effective and appropriate business model so that the employees be properly motivated and the growing structure of the company be effectively formed. For achieving this purpose the CEO hired consultants to dig into the current organizational dilemmas and come up with effective solutions.

Company Expansion:
To design an organization that would contemplate an expansion to double or triple SSTs current size. What were the best structure, performance appraisal, compensation/bonus plan, company polices, and partnering program that should be implemented?

Organizational Structure: Best Structure:

The best organizational structure for S-S Technologies Inc. which allows SST to grow successfully is Matrix structure. Matrix structure: An organizational structure that facilitates the horizontal flow of skills and information. It is used mainly in the management of large projects or product development processes, drawing employees from different functional disciplines for assignment to a team without removing them from their respective positions. This structure helps SST to
Respond more quickly to changes in the business environment. Achieve a higher degree of readiness and market adaptation. Increase the ability to react to new customer demands. Operating in fast paced and dynamic environments. Differentiate into whatever functions are needed to accomplish certain goal

It also involves to differentiate into whatever functions are needed to accomplish certain goals. Each functional worker usually reports to the functional heads, but do not normally work directly under their supervision. Instead, the worker is controlled by the membership of a certain project, and each functional worker usually works under the supervision of a project manager. When work is accomplished, the project team may get dissolved, and workers from different functional areas may get reassigned to other projects and tasks.

Performance appraisal:
Performance appraisal is the employee appraisal method which helps in the evaluation of the job performance on the basis of the Quality. Quantity. Cost. Time.

As presently in S-S Technologies there is no record of appraisals and usually appraisals are done by the CEO so proper Human resource department will be required as number of individuals increased. That human resource development will enable the following functions. Will finalize yearly/quarterly targets. Will ensure that every gets his right. Ensure no reward for bad performers. Avoid favoritism. Improve open culture S-S Technologies should use the 360 degree performance appraisal model to evaluate the performance of their employees. To avoid the biasness in the performance appraisal process. 360 Degree Feedback allows S-S Technologies to gather performance data and feedback from all members of your organization and uncover companys strengths and opportunities for improvement, while increasing employee involvement.

Compensation/Bonus Plan:
Compensation, base pay and bonuses were the most contentious issue of S-S Technology. S-S technology was considered as Underpaying organization. The biggest challenges to S-S Technology were. Pay for Performance Bonuses and Shares for Higher Management: Suitability.

If, the performance appraisal process evaluate honestly and without any biasness. So, the compensation and rewards distribute honestly to deserving employees. The idea is that incentive will be giving on individual/group performance. These kinds of pay system initiate performance culture in which extra reward for unique contributions will be given and hence everyone knows that they will be rewarded for his good work.

Company Policy:
Over the last three years, S-S Technologies had grown at an average of 33% per year where as Product group average was 64% and ISG grown by 30%. Strengths of S-S Technology: Low Cost Products Technical Expertise Flat Structure Innovation Low Overhead Resources Self-Directive Approach Flexible Work-Environment

Now expansion of company to double or triple from SSTs current size. The management knows that they could not manage $50 million in revenue and 120 to 150 employees. So SSTs should change its company policies and work with Matrix structure model, proper Human Recourse Department, Fair distribution of Compensation/ bonus plans, Quick Decision Making, highly motivated employees, Team players.

Partnering program:
Brock was anxious to develop a partnering system in which those crucial to the companys success could participate. He wanted to make people like Suttie, Schwarz and Ojala feel like owners or partners committed to the company so they would not be lured away by the promise of greener pastures.