Company X is a software company, which focuses on developing software for small to medium enterprises. Right now, the company has a structure emphasizing skill development and technical knowledge. However, the managers of the company have recently realized that decision making is slowing down and quality of decisions is decreasing. To solve the structural deficiencies, they decided to take your opinion as an expert. You suggested managers change the departmentalization strategy so that the new structure would emphasize processes. Based on the information provided above, please answer the following questions a) What is the current departmentalization strategy of the company? b) What is the new departmentalization strategy you suggested and what will be the advantages of this strategy? c) What will be challenges or problems that can be faced by the managers when the organization used this new departmentalization strategy?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Company X is a software company, which focuses on developing software for small to medium enterprises. Right now, the company has a structure emphasizing skill development and technical knowledge. However, the managers of the company have recently realized that decision making is slowing down and quality of decisions is decreasing. To solve the structural deficiencies, they decided to take your opinion as an expert. You suggested managers change the departmentalization strategy so that the new structure would emphasize processes. Based on the information provided above, please answer the following questions

a) What is the current departmentalization strategy of the company?

b) What is the new departmentalization strategy you suggested and what will be the advantages of this strategy?

c) What will be challenges or problems that can be faced by the managers when the organization used this new departmentalization strategy?

d) Overall, would you suggest organic or mechanic design to the company and why?

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