Change Management and Communication Plan
Team Names
MGT/311
Date
Instructor

Formal and Informal Power Structures
Riordan Manufacturing’s current formal structure consists of reward power and legitimate power. Establishing hierarchy and job categories through specific job codes, descriptions, and differing pay rates has found structure within the organization. Riordan’s Chief Executive Officer and Chief Operating Officer exert legitimate power to maintain employee direction. Preserving guidance and leadership with authority to oversee employee performance is crucial while implementing legitimate power. Advocating for formal power through reward power allows management to motivate and create passion for employees.
Creating motivation through formal power Riordan uses motivation by legitimate power and reward power, and uses informal power. Informal power does not come from positions within the company but still has influence on employees. For example, when the expert engineers talk other employees listen because they have proven skills and knowledge.
Most Appropriate and Effective Organizational Structures
Riordan Manufacturing does not have a formal customer information system. The customer information is left up to employees. This practice needs to change so employees can access any customer’s information. The company will open a new department dedicated to the customers. It will develop and maintain a customer database. Employees will compile the information they have on customers, and turn it into the new customer department. Standard forms will be available to ensure information is accurate. The customer department will also handle marketing to customers through mailing and e-mailing information.
Potential Effects of Selected Structure
The potential effects of this structure should be minimal on employee behavior. The employees may even appreciate