The document discusses problems with the organizational structure of a company. Specifically, it notes a lack of integration between sales and production teams, focus on production targets over quality, and lack of direct control of plant quality heads over VP Quality. It recommends a dual reporting matrix structure to address these issues, with plant heads reporting to both plant and corporate functional heads. Sales should also be integrated at the plant level and plant heads made accountable for quality.
The document discusses problems with the organizational structure of a company. Specifically, it notes a lack of integration between sales and production teams, focus on production targets over quality, and lack of direct control of plant quality heads over VP Quality. It recommends a dual reporting matrix structure to address these issues, with plant heads reporting to both plant and corporate functional heads. Sales should also be integrated at the plant level and plant heads made accountable for quality.
The document discusses problems with the organizational structure of a company. Specifically, it notes a lack of integration between sales and production teams, focus on production targets over quality, and lack of direct control of plant quality heads over VP Quality. It recommends a dual reporting matrix structure to address these issues, with plant heads reporting to both plant and corporate functional heads. Sales should also be integrated at the plant level and plant heads made accountable for quality.
How structure is contributing to the problems which are mentioned here?
Submission: 1. At the plant level, there is no integration of sales function. Sales departments functions as a separate entity at the Regional Level. Thus, there is little integration between Sales and Production Team which restricts continuous flow of information on customer feedback. 2. The focus of the plant level employees is to attain production targets which is linked to their bonus. The Controlling heads at the level of VP do not have direct control over the plant level functional heads. The VP Quality does not have a direct control with plant quality head who reports to the Plant Head – thus, he is likely to be more aligned to the controls of the Plant Head. Plant Head aims for increasing product which is executed by the Asst. Plant Manager and hence, his say will receive larger portion of the plant head’s ears. Thus, the structure of the organization is contributing to the problems as raised in the question.
What improvements in structure you recommend for addressing these
problems? Submission : The Plant Level functional heads should have a dual reporting structure, one to the Plant Head and the Other to the corporate Functional Heads (i.e., VPs). Ideally a non-complex matrix structure will be beneficial. Sales function should be integrated at the plant level also and Plant Head should also be made accountable for Quality. The General Manager (Sales) should report to the VP (Sales & Marketing) too. How will you apply star model to address the mentioned problems? 1. Structure: Creation of a Matrix Structure so that there is alignment of the functional teams at the plant level with the functional heads at the Regional Level. Same aspect to the followed at the Regional Level to make people in sync with the functional heads at the Corporate Level. 2. Strategy : Plant Level Head to be made liable for Quality. 3. Process : SOP to be created on production processes, quality maintenance and cost aspects which needs to be adhered and monitored at all levels through internal checking, quality audits, customer feedback etc. 4. Reward : Bonus should have a bearing on attaining targets as well as conformance to the quality criteria (for example : rejection rate etc).