1

How do you see Elizabeth addressing the concerns through organizational restructuring? 

Functional Structure Initial Improvements Problems

Hierarchy: The new CEO
changed the hierarchical Lack of creativity: As the work
structure, now having 7 became more specialized and
steps in the hierarchy New Motivation: Due to
with many layers promotion system the employees people used to do only one work,
got new motivation to work thus they forgot what actually the
hanging gaming market want and
due to change in work culture the
Specialization: More
specialized roles were
introduced, like R&D,
Production, Designing No holistic view As employees
etc. Clarity: Due to proper were working only on single
communication system and a project or process and as there
proper planning there was more were many layers in the
Support Functions clarity about the work, work was organization’s structure thus
Support functions like being divided according to there was lack of people with
finance, marketing departments holistic views, like
department were
introduced

Formalization
Better efficiency: The work was Delays: As the hierarchy grew the
no longer split amongst various decision making system became
A more formalized slow, as for each decision the
structure with proper
projects but could be carefully
planned and coordinated across employees need to go through a
scheduling and proper
communication channel functional units, with greater lot of formalities
was established efficiency
 2

Matrix structure – 2nd change in structure Problems

Confusion and
Both direct and indirect: disagreements : As the
With the already existing formal hierarchical structure, she departments used share of
introduced a new structure where all employees will report to same materials, thus
both the department head and the new dedicated product team confusion and
leader disagreement occurred on
who will have the final say
Matrix Structure Production teams on product
She given freedom to the Politics: As the
Elizabeth changed department and team
the structure again production team and given
them more power, each leaders were confused,
to make a coexisting the employees tarred
structure of already production team will have a
dedicated product leaded playing politics with other
existing hierarchy departments and other
and a new direct who will directly report to
Elizabeth employees
reporting approach Changing Market: A direct
problem was that, the
Holistic views market was changing thus
now the demand was
Due to the new direct leadership approach there different and as the
will be a clear holistic view of the company for the creativity was low, the
employees  company was loosing
badly

Divisional Structure
Game Development, Going back to More efficiency Free innovations A custom build
Animation & Movie the roots. Having and shared leading to structure
Development, and a decentralised integrity. Also dominant designs
Learning Tools and system keeping eye on
administration was silo
chosen as 4 divisions