Change management plan Organizations are set up in specific ways to accomplish goals, and the structure of the organization can help or hinder its progress toward accomplishing these goals. The ACME Grocery is a functional organization with the store manager and other department heads. Currently the company is experiencing low profit growth, low morale, communication problems between department heads, and the use of coercive power. Because of the power struggle between the store manager and department heads employee behavior has declined and has shown a high turnover, low productivity, poor customer service, and an absence of trust within the organization. For these reason the company has decide a change in organizational structure was imperative.
Appropriate and effective structure According to Robbins & Judge, the proper organizational structure has six key design questions, chain of command, centralization or decentralization, and formalization as well as others. The proposed new organizational structure is the matrix structure expands on the functional structure by assembling employees both function and product offering. Employees in a matrix organization report on day-to-day performance of the store. This new structure will empower the employees; model Drucker’s theory of as a team, and autonomy. The Matrix structure will embrace the diversity of the staff, a culture of decentralization in leadership, and foster competition between each department.
Effects on employee behavior By grouping employees together with similar level of knowledge and expertise, the group will exhibit traits that Katzenbach & Smith stated would have a high performance team. Committed to a common goal and purpose, hold each other accountable, a highly committed to all team members’ personal growth and success. In a matrix structure, the employees are empowered to make decision,