Airstar’s organizational design is outdated. Former president and actual president have been managing the company under the assumptions of a predicable environment. Airstar is having problems with communication and job-description along the company. Tasks have been assigned superficially and job responsibilities are not descriptive enough. The cross-functional communications among managers is not working effectively and employees have been working up their own job description. Because of that, goal accomplishment is fast becoming obsolete and decisions are being made on the basis of practicality. Also, the company is facing external threats from major competitor such as General Electric and Pratt & Whitney. The stagnation from top managers is causing chaos internally, because business environment is constantly changing and most managers have been in the company for more than twenty years. So, for maximum efficiency, Airstar needs to guide their employee with standards and written guidelines in order to succeed and move forward.
“Airstar Inc. manufactures, repairs, and overhauls pistons and jet engines for smaller, often previously owned aircraft” (Daft, 2008, p. 84). It has a solid history and its strength comes from the fact that it is well known in the market and employee loyalty. However, the rapidly changing industry parallel with the change in the presidency is causing problematic factors for Airstar. A company that has been in the market for twenty years producing customer and employee loyalty now has threat with new arriving business competition and the ever-changing business environment. Unfortunately, Roy Morgan, the president, assumes that he could continue to run the company as it had been twenty years ago. In the past, decisions had been made on the basis of practicality. However, the current environment is in need of changes in duties and management practices. The lack of ample communication concerning duties and how...
References: Daft, R. (2008), Organizational Theory and Design, 10th ed. Mason Ohio, South-Western Cengage Learning.
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