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Question

A company manufacturing sewing machines set up in 1946, follows formal organisation structure. It is facing lot of problems such as delays in decision-making. As a result it is not able to adapt to the changing business environment. The workforce is also not motivated there is a problem of red-tapism and employees turnover is very high.

You advise the company by introducing change in it. They should bring about in the company structure to overcome the problems faced by it. In which sector can the company diversify keeping in mind the declining market for the product the company is manufacturing.

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Solution

My advice to the company is to give importance to the informal organisational structure along with formal. They should allow informal structure also to develop. This will help the company to overcome the problems of delay in decisions, lack of motivation, etc. As information travel very fast in informal organisational structure. The company may get following benefits with informal organisational structure.

Company can diversify its activities by introducing embroidery machines, it can also design special machines keeping in mind the requirement of ready-made garment manufactures, etc. By diversifying in the same field it can get maximum utilisation of existing resources only.


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