Case Write Up-Appex Corp

Appex Corporation
Under the leadership of Shikhar Ghosh, Appex Corporation has undergone several significant structural changes in order to cater to its rapid growth in the past three years. Each of these structural changes just generally improved the operating performance of Appex Corporation for a short period of time, ultimately each different structure has generated a new set of barriers and problems that constrained the innovation, performance and growth of the company. Based on the changes Appex Corporation did and the result of the changes, two major lessons I can get are that: 1. All the structural changes are rapid without detail implementing plans and these changes cannot bring sustainable growth. In the past three years from 1988 to 1990, Shikhar Ghosh established around four difference structures. All of these structural changes only resolved the issues at hand, but not fix potential problems emerging along with the rapid growth of company. Also, these changes do not fit the company’s development strategies and goals well. 2. Lack effective communication with other management staff and do not give opportunity to employees to involve in the decisions of structural changes. Almost all the structural changes are made by Shikhar Ghosh, without in-depth discussion with management staff and without feedback from employees. 3. All the structural changes are radical, not flexible.

After structural changes, once the company meets new issues or problems, even some contingencies or uncertainties, which would causes a new structural change. 4. Each structural change does not mix with others structures. Based on the lessons summarized above, I would like to give my opinions and actions: 1. Before structural change, in-depth discussion about strategy or changing direction is necessary. All changes should be well communicated with the employees along with the benefits plan and ask feedback. 2. Managing changes: building detailed implementing plan is necessary, including how to address current problems, how to control potential issues which would be caused by implementing structural change, and how to deal with uncertainties. Determining the steps or tactics to be employed in managing change. 3. Setting up controls to monitor the results of change management. Using the contingency approach to handle the uncertainties and coming up with Organic structures. 4. Balancing centralization and decentralization of control and authority by means of a mix of functional and divisional structures; or balance between Vertical and Horizontal differentiation to maintain the needed level of control. 5. Introduced a Matrix structure.

Create cross functional teams that will reduce the functional barriers and overcome the problem of subunit orientation which is evident in almost all structures of Appex. Determine the kind of interdependence among units.