ORGANIZATIONAL STRUCTURE SIMULATION

Organizational Structure Simulation

Organizational Structure Simulation

Introduction

Synergetic Solutions, Inc. faces a crossroad in implementing change to its organization as a result of market changes. Two years ago, the company made a leap in to the network solutions business of designing and implementing complex computing networks. This change is resulting in new orders and now accounts for 20% of the total revenues of the company. Synergetic recently received an order worth $1.2 million for designing a network, while orders totaling $5 million are in the pipeline. The networking solution business now accounts for 20% of the total revenues of the company, which stand at $6 million at present. Mr. Redd made a decision to focus on the networking solutions business and raise its revenues to $12 million at the end of the next nine months. He also set quarterly growth targets for revenue and measures of employee involvement such as productivity and absenteeism.

The company's Chief Executive Officer has made the decision to focus the company's energy and resources on making the network solutions business account for 80% of the revenues. The Chief Operating Officer has been assigned the task of this major transformation. There are three major areas that will need to be addressed when considering these action plans:

Internal and External Forces of Change

Synergetic Solutions, Inc. is facing external changes that are forcing it to make internal changes in the company structure and way of doing business. Changes in technology are the most significant external factor facing Synergetic. Technology is Synergetic's business - keeping up with market changes is what is needed to survive. Market-share is another factor that Synergetic will face. Not only will there be others entering the market but there will be added competition for the trained professional employed by Synergetic. The economic environment also plays a role in change. When the economy is good, Synergetic will have a broader client base with more ability to compete. In a recessionary economy, there will be more competition for fewer dollars which will likely cause more internal change.

Poor financial performance is likely internal change that causes the most angst among employees. There is the risk of down-sizing or of the company shutting down completely. Employee dissatisfaction is another internal change that can negatively affect the company's performance and profitability. Dissatisfaction leads to poor attendance and performance. A third internal force of change is inefficiencies within the corporation. ...