Reorganizing the Woody Company -MGT 330-

Topics: Lean manufacturing, Manufacturing, Six Sigma Pages: 5 (1342 words) Published: April 28, 2008
Reorganizing the Woody Company � PAGE * Arabic �1�

Reorganizing the Woody Company: A Strategy for Growth

University of Phoenix



Background

Woody Company is a small sole-proprietorship that specializes in the manufacture of high quality bar stools. Currently, three types of bar stools are marketed with increases in standing orders currently reaching $750,000. Mr. Woody has decided to expand his organization to and aggressively pursue the market, but realizes that issues with defective wood from his suppliers, manufacturing quality defects and problems associated with late delivery of his finished product has impacted his profit margin (Bateman & Snell, 2007, p. 317). My assistance has been solicited to optimize the organizational structure, recommend pay structure and determine work allocation within the company.

Organizational Structure

A small company is, by definition, one that employs less than 500 employees (Hatten, 2007, p. 5). This is only relevant from the prospective that being a small business by definition allows for certain assistance from the Small Business Administration and tax code specifications. More importantly, the small business is a mindset of operation that will capitalize on the potential strength of flexibility and responsiveness that can only be exercised with a company that "can move fast, can provide quality goods and services to targeted market niches, and can inspire greater involvement from their people" (Bateman & Snell, 2007, p. 298). Mr. Woody has provided a mission and vision statement for his company that states the following: "To manufacture world-class products that are competitive in the world market in quality, reliability, performance, and profitability (and) to create a culture where pride, ownership, employment security, and trust are a way of life" (Bateman & Snell, 2007, p. 317). What follows is a plan that will meet these expectations and provide opportunity for increased growth.

Some of the agility that is afforded by keeping the focus of the company on remaining small is a greater ability to use a mechanistic structure that is able to remain responsive, promoting both a high involvement and a continuous learning environment, enhancing quality improvement standards and embracing lean manufacturing as a means to improve overall profitability.

Figure 1 (p. 8) is the proposed organizational chart for Woody Company which I will use to illustrate work responsibilities covered later in this proposal. Although this structure may serve to contradict some popular beliefs that organic structures can be more responsive to changing company dynamics and market realities (Bateman & Snell, 2007, p. 292), a 2006 article in the Academy of Management Journal which studied the difference between mechanistic and organic structures contradicts this viewpoint. In this study Sine, Mitsuhashi and Kirsch prove that mechanistic structures promote "low role ambiguity, high levels of individual focus and discretion, low coordination costs, and generally high levels of organizational efficiency" (pp. 130-131). I submit that this type of organizational structure is precisely what Woody Company needs to build on existing successes. By following my model of reorganization, the benefits that can be seen in a more organic structure, such as an inherently increased amount of flexibility through coordinated decision making and individual employee empowerment, can and will be realized. Top-down investment in the continuous training of the employees of Woody Company, through the direct efforts of the Human Resource and Training Office is an investment that will pay rewards in not only employee loyalty, but also efficiency in all the operations.

Focus on Communication Strategies

Management focus on preventing or lessening communication barriers will serve to not only empower all employees, but also help improve processes which may lead to greater efficiency and profits. One...

References: Bateman, T, & Snell, S. (2007). _Management: The New Competitive Landscape (7th ed.)_. New York: McGraw-Hill/Irwin
Hatten, T. (2006). _Small Business Management: Entrepeneurship and Beyond (3rd ed.)._ New York: Houghton Mifflin Co.
Knudson, B. (2007, September). Implementing A Vision. _Manufacturing Today_, _7_(5), 48-51. Retrieved January 6, 2008, from Business Source Complete database.
Sine, W., Mitsuhashi, H. & Kirsch, D. (2006, February). Revisiting Burns and Stalker: Formal Structure and New Venture Performance in Emerging Economic Sectors. _Academy of Management Journal, 49_(1). 121-132. Retrieved January 5, 2008 from Business Source Complete database.
Weissman, R. (2006, January). We Are the Champions. _The ManufacturerMagazine_ retrieved January 6, 2007 from http://www.themanufacturer.com/us/content/3947/We_are_the_champions

Figure 1. Woody Company Organizational Chart
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