Evaluate a current organizational structure and recommend structural changes that can help address the concerns the organization identified regarding collaboration, communication, and autonomy.
Scenario
You work for an organization that has traditionally been very formalized, and managers have had a very broad span of control over direct reports from multiple departments and functions. This worked well in the past; managers were able to oversee a high number of direct reports because there were many rules and regulations dictating how their work should be performed. However, there were downsides. Employee talent was underused, and there wasn’t a strong team culture, as most work was done independently according to standard operating processes.
Recently, the organization has been shifting to less formalized working structures to support more creative, innovative work and provide employees with more autonomy. While employees are happy with the purpose of these new changes, managers are feeling overwhelmed, and employees are feeling undersupported. This has impacted function-specific work the most, because in the past, managers didn’t need to understand in-depth, function-specific tasks (such as the technical aspects of graphic design work or the intricacies of project management). Instead, they had the ability to rely on rules, regulations, and standard operating processes. Employees have also noticed a lack of communication around current projects, which has led to a lack of updated information and duplicated work across management teams.
You have been asked to work with the human resources department to recommend a new organizational structure that addresses these identified management and communication concerns.
Full Answer Section
Key Challenges:
- Manager Overload: The broad span of control, previously manageable thanks to rigid processes, is overwhelming managers in the new, less formalized environment.
- Lack of Function-Specific Support: Managers lack in-depth understanding of specific functions, hindering their ability to support employees adequately.
- Communication Silos: Information silos across management teams lead to duplication of work and outdated information.
- Employee Uncertainty: Unclear communication and roles leave employees feeling unsupported and unsure of their contributions.
Recommendations for a New Structure:
1. Implement a Matrix Structure:
- Create cross-functional teams focused on specific projects or objectives.
- Each team has a dedicated project manager with deep functional expertise.
- Line managers retain broader responsibility but delegate day-to-day tasks to project managers, easing their workload.
2. Establish Centers of Expertise (CoEs):
- Form groups of highly skilled individuals in specific functions (e.g., graphic design, project management).
- CoEs provide consultation, training, and support to project teams and managers, addressing the lack of function-specific knowledge.
- Promote knowledge sharing and collaboration across departments.
3. Enhance Communication Channels:
- Implement regular team meetings and project updates to ensure everyone has access to current information.
- Utilize collaboration tools for centralized document sharing and communication.
- Encourage transparency and open communication across all levels.
4. Focus on Skill Development:
- Train managers in leadership and delegation skills to effectively manage teams in a less formalized environment.
- Equip employees with skills for collaboration, communication, and self-management.
5. Foster a Culture of Trust and Autonomy:
- Clearly define roles and responsibilities within the new structure.
- Empower employees to make decisions within defined parameters.
- Encourage open communication and feedback to address concerns and adapt the structure as needed.
Benefits of the Proposed Changes:
- Reduced manager workload and improved support for employees.
- Deeper understanding of functions and improved decision-making within project teams.
- Enhanced communication and collaboration across teams, reducing duplication and improving efficiency.
- Increased employee engagement, ownership, and motivation.
Remember:
- Implementation should be gradual and involve all stakeholders.
- Monitor and evaluate the effectiveness of the new structure and make adjustments as needed.
- Communication and transparency are crucial throughout the process.
By implementing these recommendations, your organization can adapt to the changing work environment while addressing the concerns raised by management and employees. This will enable collaboration, communication, and individual autonomy to flourish, leading to a more innovative and successful organization.
Sample Answer
Addressing Concerns in a Shifting Organizational Structure
Understanding the Situation:
The described scenario highlights a challenge faced by many organizations transitioning from a formalized to a more flexible structure. While the shift aims to foster creativity, innovation, and employee autonomy, concerns about management burden, employee support, and communication gaps have emerged.