Organization structure is the fundamental methods and practices used to run a firm. It includes the business’ strategies, ideologies and employee culture. The flow of information and resources depends on the efficiency of the organization structure therefore it is important to have a clear and well defined structure. This reduces miscommunication, duplication of work as well as idle or wasted resources such as time or man-power. This department is facing several challenges and managers are not happy with the results of the current year. I understand there is also very low employee morale but we will address these issues each in turn and come up with viable and lasting solutions. This will ensure the organizational goals and objectives are attained. This will also imply that the optimum goal of profit maximization is reached. The first issue to be addressed is the outdated product line. Our product no longer has as much impact as it did when it was first launched. This can be attributed to the fact that there have been several new entrants into the market from our competitors. Our product is also being passed over for more modern and more advanced items available to customers (Mohr, 2003). The second issue is the adversarial communication. The flow of information between the staff and from management to the juniors is apparently being met with a lot of animosity and people are not feeling free to ask questions or seek to have their problems addressed. Communication is a key ingredient in business success and without it even the most creative ideas cannot be brought to fruition. The third and final issue is competition for corporate funding. The management has been making various cost cuts and with the departments product line being on a downward spiral, funding for this department is reducing. This can be changed by improving our competitive edge in the market by increasing demand for our product.

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Outdated product line

The product must under-go a total make over in order to seek markets previously not included. I propose a divisional structure. This will ensure that a specific lines manager is assigned this product. This manager will take care of re-branding and marketing of the product as well as any miscellaneous affairs relating to the product. Expenditures and revenues of the department will be handled directly and all staff report to the line manager.

Adversarial communication

The main cause of breakdown in communication is where the staff feels their ideas and their preferences are not incorporated by the management. The long the chain from top management to the staff has also played a large role in miscommunication as well as animosity since the staff feel that management does not understand their efforts and ideals.  I propose a functional structure. The individuals assigned to this task will work together more close nit and exchange ideas in a more compact environment touching specifically on the revamped line (Robbins & Judge, 2007).

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Competition for corporate funding

This is majorly caused by other departments being more competitive but with positive changes brought about by the changes in the product line as well as communication, the corporate funding will change positively. A matrix organization structure should be used hand in hand with the functional and divisional structure to ensure that the over-all organizational objective is achieved (Burns and Stalker, 2002). The external environment in which the business is operating is very dynamic. I have chosen a team of staff from various departments who will conduct continuous research on our competitors, the customers and the basic market in which we operate. This will help us keep abreast of any changes and thus adjust our product and our marketing strategies accordingly.

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