Business

There are many factors that usually contribute to the failure of organizations. Some of these factors arise from within the organization whereas others are usually as a result of external forces(Sudan  Chand, 2004).  As a new manager in this failing organization, I would have to strategize on how to put this organization back on track. To begin with, I would address the issue of outdated products. For this organization to do well, I would have to change the products to make sure that they are in line with the current market needs and that they are competitive(Sudan  Chand, 2004). To do this I would require that the marketing team in the department carries out market research on consumer needs so as to know whether the way forward is to improve the old product or its to create a new one(Sudan  Chand, 2004).  Another step would be to carry out research on the nature of products being offered by competitors, this would give me ideas on how to create a modern product that would be competitive. The overall effect of this would be increased sales for the department which would be a step towards putting the organization back on track.

Regarding the issue of adversarial communication between departments, I would first seek to know the origin of this adversity. I would design questionnaires that would seek to get opinions of employees regarding other departments. After this I would liaise with managers of the other departments in trying to address the issues raised to improve the interdepartmental relationships. This is important since no single department in an organization is totally independent (Price, 2007).

On the issue of departments competing for corporate funding, I would have to come up with a financial plan that would convince the top management to fund the project. This would include preparing financial statements showing the projected cost of the project. I would explain to them how the new product would turn-around the whole organization in general as well as justify the projected expenses.

The process of organizational design is usually continuous. The design of an organizational structure should fit the requirements of the organization in addition to being in line with its strategies and environment (Sudan  Chand, 2004. Currently the organization has a product structure which is a variation of divisional structure. The most suitable organizational structure for this organization would be the functional type. This type of organizational structure divides an organization into departments each of which handles a different function (Sudan  Chand, 2004. This will eliminate the issue of competition for resources which is happening due to each department handling a different product. Centralizing the production function will ensure that money will be allocated to it according to its needs. As a result, all product lines will perform well in the market as there will be pooling of skills in the production department.

To manage the structural changes, I would suggest that the organization centralizes all similar functions in the organization. This would mean laying off some of the employees in similar fields since they cannot all fit in the same department (Chattopadhyay  Pareek, 2009). Following this, I would suggest that they be compensated. I would then suggest that steps be taken to ensure that the employees are harmonized to resolve the previous hostility.

The external environment comprises of factors outside the organization but which affects it. I would assess these factors and integrate them into the new plan. First I would assess the legal aspects of laying off workers so as to follow the right steps (Chattopadhyay  Pareek, 2009). I would also assess the production technological advances and adopt them for more efficient production.