Implement a matrix structure. Similar in some ways to the divisional structure described in action one, a matrix structure can benefit from the functional divisions formed in the divisional structure but also supplement these divisions with divisions based on products as well. Employees are grouped by both function and product in a matrix and frequently teams of employees will be assigned to a project to accomplish a specific goal. This type of structure can take advantage of the best parts of divisional and team based structures. If Appex were to consider a matrix format I would recommend a balanced/functional matrix. This form of a matrix structure is one in which a project managers are assigned to oversee projects and these project managers must share power with the functional managers who are the normal chain of command. One of the disadvantages of this arrangement is the division of power between the managers but if Appex’s managers could overcome the difficulty inherent in such a power sharing scheme then this could be a beneficial way to structure the company.
4) A classical hierarchy. I believe that this time-tested structure is what Appex needs as it has grown too large and complex to operate efficiently in any of the structures described above.
Although some consider this to be an impersonal form which would not allow for the employees of Appex to operate in the unstructured way that they did at the beginning, the simple fact of the matter is that the employees of Appex had already slipped out of that productive mode long before Mr. Ghosh arrived on the scene. Although they began as a cohesive group, that cohesiveness had become chaotic by 1988. The company is large and getting larger. If it wants to achieve common goals then it needs to clearly set those goals and communicate its wants to its employees so they can