S.S. Technologies Inc: Building Effective Organization

Topics: Organizational structure, Reward system, Decision making Pages: 5 (718 words) Published: November 2, 2013

There are some problems need to be improved after SST was owned by Rick Brock. First, SST has not a strong organizational culture of it own, because few workers are able to identify the company’s goals and strategies. Second, the present structure of SST has not to structure a clear position responsibility between Ojala and Suttie. Which structure caused large PLC vendors not investing in the learning curve themselves but just came to SST to solve their problems. Moreover, a personnel constraints issue in PG and lack a formal audit of customer satisfaction. Third, SST has not a complete reward system, which led to staffs’ dissatisfaction. The present compensation is hard to practice partners’ bonuses to improve talent employees’ loyalty. Fourth, SST lacks a good performance appraisal, even that no one can be found to answer question about benefits ranges for various jobs.

1. Although SST could maintain it existing organizational culture, because that led to a high motivation and flexible workplace. SST need to strengthen it culture, to ensure all employees have a clear vision about is, could understand it and “fit” in with it. 2. As a high-technology company, the flat organization structure is beneficial for company, but cannot too flatter, too few middle management layer is against quick decision-making. SST also needs to consider its external environment for design the best structure (dynamic, complex, diverse and hostile environments). 3. SST needs to build a complete reward system; they should pay bonuses based on workers performance and could make a plan for the partners’ bonuses. In order to make sure the reward system is fair, a job performance evaluation system is necessary.

1. Employee morale: an inappropriate structure be chose and reward system be built by the company, would result in low employee morale, which is not conductive to the development of SST. 2. Risk: there would have some risks when SST chooses a wrong direction, the company would unable to get what they desire (quick decision making, high performers, etc.) and may need to spend more money and time to make adjustments. 3. Staff turnover: a wrong decision-making may cause employees dissatisfaction. 4. Motivation: the ultimate goal is to maintain high employee motivation.

Alternative Solutions:
1. Organizational structural:
Solution 1: To keep the original structure, divisional structure; and choose to operate with organic structure. Solution 2: Change to a matrix structure and choose organic structure 2. Organizational culture:

Solution 1: Innovation
Solution 2: Outcome orientation
Solution 3: Team orientation
3. Compensation system:
Solution 1: Membership-and seniority-based rewards
Solution 2: Job status-based rewards
Solution 3: Performance-based rewards

Comparison of Solutions:
1. Organizational structure: to compare two solutions, Matrix structure has a higher employee moral, the divisional structure would reduce motivation of workers to share knowledge, but Matrix would cause conflict between two bosses and may increase staff turnover. 2. Organizational culture: Innovation has the highest employee moral and motivation. Outcome orientation led to a high job performance, higher employee moral. Team orientation is people orientation, led to the lowest staff turnover. 3. Compensation system: Solution 3 is best one, which led to the highest employee moral, lower risk and high motivation. Solution 1 could reduce staff turnover and Solution 2 has the highest motivation to compete for promotions.

Implementation Plan:
First, to choose matrix structure and organic structure, which is useful to solve the issue between Suttie and Ojala, Suttie could be de functional leader. Then, to hire more staffs for PG marketing team and hire an auditor for customer satisfaction. Second, as a technology company, innovation is better for SST’s culture. Through control system, social glue and...
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