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Organizational Structure Case Study

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Organizational Structure Case Study

Organizational issues: Case Study - Acme Security

Acme Security:
The company provides security and fire alarm systems for high rise buildings and large corporate and government customers. It had grown to more than 40 employees in a short time, but was finding it increasingly difficult to provide the service customers expected. The company’s organizational structure had evolved to meet the needs of the many family members that worked in the company, but not the needs of the customers.

Acme Security company’s (the name has been changed to maintain its anonymity) original organizational structure caused many problems for the company, especially as its customer base began to expand.

The company had a product-based structure. The departments included Inspection, Maintenance, and Alarm Installation. Each department had a manager, a sales manager, field crews and administrative support. Even though most customers needed and purchased all of the company’s services, no one was responsible for meeting the total needs of the customer. Each department focused on getting its work done. The lack of communication and coordination resulted in scheduling and invoicing problems.


Acme Security - Original Organisational Structure


Acme Security - Original Organizational Structure

With the ultimate goal of improving customer service, what should the new and improved Acme Security organizational structure look like?

For this company, a function-based rather than a product-based structure was more appropriate. The most important change was to assign one person as the primary contact for each Acme Security customer. This Account Manager would report to the Sales Manager.

The new company structure features two other key management positions, an Operations Manager and an Office Manager. These three key managers report to the CEO. The challenge for the CEO was to delegate responsibility and authority to these three managers. In the following pages the composition and responsibilities of these three functional departments will be discussed.

Acme Security - New Organizational Structure

Acme Security - New Organizational Structure

Sales: includes the Sales Manager, the account managers and estimators. Account Managers are assigned by building or a major corporate account. This way everyone in the company, and more importantly the customer, knows who is responsible for a question or problem.

Operations: includes the operations manager and the field crews. This department includes a position responsible for scheduling all operations work and a position responsible for collecting and entering all job cost information. Operations’ primary task is to meet the needs of the Account Manager and the needs of the Office Manager with respect to information required to process invoices and payroll.

Administration: Administration is led by the Office Manager. This department includes the receptionist, Accounting Manager, and Human Resources. This department’s primary task is to issue invoices and manage payables, receivables, and to provide management with timely financial reports.

With improved structure and communication, the CEO of Acme Security can focus on more strategic issues!