Structural Issues that Need to be Addressed when Merging Two Organizations

Pages: 1 (273 words) Published: June 19, 2013
When two organizations merge what type of structure issues doyou think might need to addressed?When Reisman was made a task to merging two organizations intoone, Indigo and Chapter both had similar organizational structure -afunctional based design.Indigo’s corporate structure, for instance consisted of departmentssuch as marketing, human resources, and retail. However, the neworganization suddenly had 90 big- box stores and close to 7,000employees. Moreover, with the take over, Indigo gained control of thenation wide.So when these two types’ organizations merge they can chose therecustomers and product mix and the assets which they have combined,the resources and the common functions which they have. They alsoset staffing numbers and decide salary levels. All customers, privateand corporate, no matter what size, are the responsibility of a localbranch. That means that even a large global customer such as Volvo ismanaged by a branch office. However, a branch office “buy in” specialist services it may need in servicing important customers likeVolvo. Each branch manger is also responsible for branch performance,which is measured by ratio of costs divided by revenues, and all thebanks branches are benchmarked against each other. if a branch startsunderperforming the regional office will offer advice and examples of what other branches have done. And to stop predatory competitionbetween its own branches, the company has set strict geographicalboundaries. Q2

what role do you think organizational structure plays in anorganization’s efficiency and effectiveness?Organizational structure is the formal arrangements of jobs within anorganization. When mangers develop or change the structure they’reengaged in organizational design. The challenge for managers is todesign an organizational structure that allows employees to effectivelyand efficiently do their work.
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