Sherman Computer Repair

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Running Head: SHERMAN COMPUTER REPAIR NEW DIRECTION

Sherman Computer Repair New Direction
Erica L Shupp
University of Phoenix

Sherman Computer Repair New Direction
Sherman Computer Repair, a small computer repair company, has the opportunity to move from a computer repair company to a computer assembly company through the use of creativity and innovation (University of Phoenix, 2009, n.p.). “Innovation is the process by which organizations use their resources and competences to develop new or improved goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers” (Jones, 2004, p. 403). Since change requires innovation to be successful, Sherman Computer Repair must assess and restructure the company, allowing for the introduction of new processes, technologies, and services for the organizational to move toward this new strategy and way of business.

Sherman Computer Repair must plan accordingly and establish the steps they must take in order for the new direction to be of any success. Within this paper Sherman Computer Repairs new organizational design as well as any barriers that may exist will be discussed. Also an evaluation of the company’s external environment including strengths and weaknesses and an assessment of the company’s current talent and skill sets needed for change will be presented. Sherman Computer Repair Organizational Design

Sherman Computer Repair currently has three locations where customers can bring computer hardware in for repairs and each location is staffed with a manager, three computer technicians, and a receptionist (University of Phoenix, 2009, n.p.). The company also employs 12 mobile technicians for customers in home service calls. The current organizational structure of Sherman Computer Repair is one of a functional structure. According to Jones (2004), the functional design is a subunit made up of a group or departments working together but independently of one another, each that possess like skills, and use the same knowledge, tools, or techniques to perform their positions (p. 99). The functional organizational design is structured with a hierarchy based on subordination and departments acting independently of one another but still working towards a common goal. Several barriers exist that have a direct correlation to the functional structure that Sherman Computer Repair utilizes. These specific barriers could possibly prevent the company from continuing to move towards their new goals and developing new technologies and innovations. The first would be that of communication and coordination, organizations making use of a functional structure struggle with communication between the subunits or functional group. These issues can range from the organizational progress becoming slower and inflexibility to anything that may not be planned. “To avoid communication problems that can surface organizations try to find new or better ways to integrate the functions of the organization – to promote cooperation, coordination, and communication among separate subunits” (Jones, 2004, p. 103). Another barrier that could prevent the comp any from initiating new technologies is differentiation problems. Currently the company is very small and the division of labor is quite simple and very few problems are encountered but with the new direction consisting of a growth in the company the division of labor will become much more complex. “Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals” (Jones, 2004, p. 95). With Sherman Computer Repair growing the managers must make the appropriate decisions regarding the balance of vertical and horizontal differentiation for there to be success. Sherman Computer Repair may also struggle with...
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