Sofiya Zayats. Exchange Student

Sofiya Zayats. Exchange student

Case study 2. AdWise

1. Talking about the old business unit organizational structure of the AdWise it is possible to define both advantages of this organizational structure as well as some weaknesses. It is could be beneficial for company divisions to work using this organisational structure, because it allows  employees to be focused on a single product, with a managment structure which is oriented on the main company’s strategic objectives. Having own boss to make delivery of information and underatnading who report to is easier for employees. Moreover, it is more comfortable for division to build its own common culture and motivate the employees, taking into account the cultural pecularities of the country of operation. Its easier to build the control system in such an organizational srtucture. Considering the other side of the coin it could be mentioned that perception of this structure from the competition prospective, it can lead to the situation where one divison will tend to undermine the reputation and image of other one in order to inflence the allocation of resources among the devisions. New organizational structure of AdWise where CFMs will directly report to the regional CFO will bring more confidence to the company that they will not recruit incompetent CFM as it was before, it can also create more efficient way of information delivery and processing.

1. In my opinion the organizational structure hasn’t experienced any dramatic changes, however, this change about responsibilities of CFMs and CFO can reduce the risk of results manipulation. Now, when CFO will analyze properly the level of competency of the CFMs and check delivered by him information about company’s performance, the risk to get “good-looking’, but fake information will be lower. But anyway it has to be kept in mind that strong control of CFMs can cause uncomfortable working environment for them. Psychological aspect related to the unwillingness to deliver bad news about company can somehow influence the behavior of CFOs, thus, CFOs must be chosen properly as well.

1. Interpersonal communication is extremely important and can dramatically influence the company’s performance, what can later lead to the necessity to bring some changes into organizational structure. Working conditions inside the company, job demand, job support and  job control need to be balanced in order to avoid the dissatisfaction and low motivation of employees. It is responsibility of the management to build efficient communication ties within the organization. Respect, trust, fair treatmeant of workers, clear understanding of the tasks always motivate employees and influence positively on their performance. Nevertheless, too friendly and informal relations in the office can distract employees from the work, so it is crucial to see the limits for the frindliness in the office.

1. Matrix organizational structure combines the characteristics of functional and business units structures and considered to be one of the toughest structure to work in.

Advantages of Matrix organizational structure for AdWise:

• Closer communication between the divisions which is encouraging the productivity
• Quicker decision-making process
• Information exchange of this structure allows managers to be aware about current situation in the company what is very useful in terms of making important decision for the company, considering opinions and viewpoints of employees.
• Matrix structure can increase the motivation among AdWise employees because of higher level of involvement

Disadvantages of Matrix organizational structure for AdWise:

• Matrix organizational structure is quite complicated
• Employees of the AdWise can be confused by the new organizational structure which is dramatically different from the old one, which they got used to
• It can cause employee turnover
• Lack of understanding of new reporting system
• It could take a lot of time for both employees and managers to adapt to a new organizational structure
• Inadequate competition within the organization
• Miscommunication and less efficient management
• It will cause additional expenses, because maintaining of matrix organizational structure is expensive.

1. Practice of the AdWise shows that they were quite successful about doing business using business unit organizational structure, they had one unpleasant experience with incompetent employee, who delivered wrong financial information, but company took the necessary measures in order to avoid similar issues in the future. In my opinion AdWise should keep their current slightly changed structure and see how it works for them, before change the organizational structure totally.

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