April 21, 2012
Dr. James Burrescia
Sherman Computer Repair New Direction
Sherman Computer Repair is a small company with the potential to establish itself as an innovative organization. “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). To transform their organizational structure to one that is successful and innovative, Sherman Computer Repair should re-evaluate their organizational design and restructure the company that encourages innovation through enhanced processes, better services and up-to-date technologies. This paper will discuss the current organizational structure design and the external environment of Sherman Computer Repair. This paper will also discuss the company’s current and required talents and existing barriers that prevent them from changing into a successful and innovative organization. Sherman Computer Repair Organizational Design
The three locations that Sherman Computer Repair has consist of a manager, receptionist, and three technicians. Sherman Computer repair also has 12 additional technicians assigned for in-home computer services. Their current organization design incorporates a functional design organizational structure. “ Functional structure consists of units or departmental groups identified by specialty, such as engineering, development, marketing, finance, sales or human resources that are controlled from the top level of management,” (The Functional Structure Of An Organization, n.d.). As with other types of design structures, functional design structures do have advantages and disadvantages. Advantages include a clearly defined chain of command, expedited decision-making, and departmental knowledge within each group while disadvantages can include a narrowed organizational scope of employees’ skills and abilities, poor communication between departments and slow adaptation to organizational and environmental change. Typically, the functional design structure is better suited for an organization that provides limited or specialized products or services. Departments in a functional design work independently from other departments while attempting to achieve the same organizational goal. While the chain of command in organizations that have a functional design is vertical, communication and information flow become barriers because of the different departments and groups. Organizations attempting to expand and grow will most likely face various issues when making changes or modifications to their current organizational structure and design. Poor communication as a nature of functional structure is one of the a few major barrier [pic]that would[pic] prevent [pic]Sherman Computer Repair from becoming[pic] an [pic]assemble company[pic] because poor communication can delay the cooperation and the coordination between the subunits of the departments or between the departments of the organization. “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). Another potential barrier with the existing structure is the division of labor. Organizations that are interested in growth and expansion need to look at their division of labor also because growing companies has complex division of labor. “Differentiation is a 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). [pic]Sherman Computer Repair is a small[pic] and a simple [pic]company with few jobs. Most of the people who work for Sherman...