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Running head: AFFECTING CHANGE

Affecting Change
University of Phoenix
Organizational Leadership
LDR 531
Doreen Gounaris
February 23, 2009
Affecting Change
A company is only as strong as the foundation it is built upon. The strength of that foundation, in all businesses, is formed by the people who elect to work for the organization. In the case of Smith & Falmouth Online, the company needs to reinforce its foundation. Collectively, team D has come up with recommendations for S&F Online focusing on restructuring the business, making management more effective leaders, and how the size and structure of the S&F Online division can affect the overall organization. As we determine the best way to restructure S&F Online to create a unified team, our goal is to address six key elements that managers need to concentrate on when redesigning an organizational structure. These building blocks of the organization are: work specialization, departmentalization, chain of command, span of control, centralization and decentralization and formalization (Robbins & Judge, 2007). However, we realize that when new forces come into an organization the results are not always easy or pleasant for those involved in the process, as some will not come out of the procedure unscathed. Recommendations for Restructure

First, work specialization is already in place as each manager and team members have his or her duties assigned to them and so far, the coordination between the teams has already yielded good results. However, the Chief Operating Officer (COO) is new so he or she must reach out to connect with all the managers in place to establish a good relationship, promote efficiency and create better communication in ways that will successfully develop the S&F Online division. Once this is done, then we must look at departmentalization. S&F Online already has this element well coordinated as each department knows its own functions and completes them without interfering with each other. This element again, will apply to the COO and the managers. The COO needs to meet with each manager individually and go over his or her individual functions. This will help to establish a rapport and to ensure that no one manager is doing the work of the others. That being said, chain of command works closely with departmentalization. Here, the COO has to discuss two complementary concepts with the managers: authority and unity of command. The COO has to align each manager, including the alignment of his or her own responsibilities within the position. This means that the COO must clear the chain of command that is to be followed. Then, the COO should explain the unity-of-command, which means that a person should have one and only one superior to whom that person is directly responsible. The unit-of-command is important because if broken, individuals might find themselves reporting and having to comply with the requirements of many managers causing them to become stressed and perform less effectively in their required duties. S&F Online’s span of control is well determined. Each manager has successfully been able to manage and lead his or her team members, which poses no need for concerns within department size and control. The next key element to discuss is centralization and decentralization. This refers to where the decision-making authority lies. Until now, it is visible that the Project Manager seems to hold much of the power. In an effort to have a positive team restructure, the COO must meet with all managers to determine how decisions will be made. It is here that the COO must be extra careful as the outcome of this meeting will result in a successful acceptance of the structure change or a failure to conform. Centralization refers to upper management making all key decisions with little or no input from lower-level personnel. Decentralization refers to giving lower-level personnel the discretion to give input...
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