Appex Case Study Solution

1144 Words5 Pages
• Appex, was a small entrepreneurial, technology-driven and loosely structured company. Employees came in when they felt like it; people were getting to work at 10 a.m. Instead of being there at 8 a.m. They had twenty-five employees with $2 million in revenue. The venture capitalist who had invested in the firms were hoping that Ghosh would be able to turn it around. The company was spending money rapidly without monitoring their expenses. Ghosh noticed that employees would arrive at work and react to whatever the crisis was that day. They were putting out fires instead of developing products. Complaints from customers increased, as Appex was unable to handle the demand and volume of the customer’s orders. Appex started falling behind schedules…show more content…
Problems addressed; the issue of information flow was addressed while allowing the organization to keep its flexibility. Problems created or persistent; employees could not relate to the unfamiliar circular structure. New hires couldn’t understand how they fit in the organization and with whom to talk to, get things done, what was the power structure and who had the authority to make decisions. They did not know how their performance was evaluated• Hierarchical, functional structure: The functions were organized as teams; there was a sales/marketing team, a software development and service team, an engineering and technology team, an operations team, a finance, human resource, etc. he faced issues how many teams should he create, who should there be a separate finance and accounting and human resource tea. Who should be the head of each team? He wanted each function to report to him in a horizontal fashion this displeased the board of directors and wanted Ghosh to present a traditional diagram like a hierarchical organizational…show more content…
It improved accountability, budgeting, and planning. Employees focused on meeting financial targets. Within the divisions, there was a great deal of cooperation. Ghosh was able to spend less time addressing the day-to-day operations of the company to more time planning its strategic direction. There were some problems with the new structure resource allocation. The senior executive’s decisions about resource allocation were not always perceived as fair. The problem of shared resources led to antagonism between the divisions. Ghosh decided to remove all development money from each division, and have the division’s present funding request on an individual project basis. Another issue divisions wanted control over their resources; they did not want to share resources. Another issue was that little communication flow across the divisions and little exchanging of ideas between the divisions. Ghosh started to see each division began to act like a small company because each division had many layers they would play games with the numbers making it difficult for senior executives to gain accurate numbers for the financial status of the company.
• Yes, I would say so because they had to keep trying to figure out what would work best for the company. The divisional structure was the most necessary in my opinion because it allowed resource allocation and better accountability, budgeting, and planning. It worked well with the company’s financial
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