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Question

A company manufacturing sewing machines, set-up in 1945 by the British promoters, follows formal organisation culture in totality. It is facing a lot of problems in delays in decision-making. As the result, it is not able to adapt to changing business environment.

The workforce is also not motivated since they can not vent their grievances except through formal channels, which involve red tapes. Employee turnover is high. Its market share is also declining due to changed circumstances and the business environment.

You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it

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Solution

The suggestions are:

(i) To overcome the limitations of formal organisation, the management should encourage workers to interact and socialise with each other through getting together and outings. In this way, everyone will interact and like-minded people will come closer. The net result will be more satisfied workforce.

(ii) The management should also introduce employee suggestion systems so that good suggestions can be implemented and rewarded. The communication channels should be open so that a sense of belongingness is created in the company.

(iii) The management should try to decentralise the organisation structure.

(iv) The suggested area where the business can be diversified is flexible machinery like embroidery units-sequencing units, buttoning units.


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