Sherman Computer Repair
Running Head: SHERMAN COMPUTER REPAIR NEW DIRECTION Sherman Computer Repair New Direction Erica L Shupp University of Phoenix Sherman Computer Repair New Direction Sherman Computer Repair, a small computer repair company, has the opportunity to move from a computer repair company to a computer assembly company through the use of creativity and innovation (University of Phoenix, 2009, n. p. ). Innovation is the process by which organizations use their resources and competences to develop new or improved goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers” (Jones, 2004, p. 403). Since change requires innovation to be successful, Sherman Computer Repair must assess and restructure the company, allowing for the introduction of new processes, technologies, and services for the organizational to move toward this new strategy and way of business.
Sherman Computer Repair must plan accordingly and establish the steps they must take in order for the new direction to be of any success. Within this paper Sherman Computer Repairs new organizational design as well as any barriers that may exist will be discussed. Also an evaluation of the company’s external environment including strengths and weaknesses and an assessment of the company’s current talent and skill sets needed for change will be presented. Sherman Computer Repair Organizational Design
Sherman Computer Repair currently has three locations where customers can bring computer hardware in for repairs and each location is staffed with a manager, three computer technicians, and a receptionist (University of Phoenix, 2009, n. p. ). The company also employs 12 mobile technicians for customers in home service calls. The current organizational structure of Sherman Computer Repair is one of a functional structure. According to Jones (2004), the functional design is a subunit made up of a group or departments working together but independently of one another, each that ossess like skills, and use the same knowledge, tools, or techniques to perform their positions (p. 99). The functional organizational design is structured with a hierarchy based on subordination and departments acting independently of one another but still working towards a common goal. Several barriers exist that have a direct correlation to the functional structure that Sherman Computer Repair utilizes. These specific barriers could possibly prevent the company from continuing to move towards their new goals and developing new technologies and innovations.
The first would be that of communication and coordination, organizations making use of a functional structure struggle with communication between the subunits or functional group. These issues can range from the organizational progress becoming slower and inflexibility to anything that may not be planned. “To avoid communication problems that can surface organizations try to find new or better ways to integrate the functions of the organization – to promote cooperation, coordination, and communication among separate subunits” (Jones, 2004, p. 103).
Another barrier that could prevent the comp any from initiating new technologies is differentiation problems. Currently the company is very small and the division of labor is quite simple and very few problems are encountered but with the new direction consisting of a growth in the company the division of labor will become much more complex. “Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals” (Jones, 2004, p. 95).
With Sherman Computer Repair growing the managers must make the appropriate decisions regarding the balance of vertical and horizontal differentiation for there to be success. Sherman Computer Repair may also struggle with balancing centralization and decentralization within the company. Currently the company’s managers possess centralized power but with the expansion of the company they will become overloaded with work. The responsibility to make day to day decisions may rely on additional employees due to decision makers being tied up with the general operations of the company.
Many times employees are weary about taking on responsibility due to the risks being involved in decision making. “When nobody is willing to take responsibility, decision making becomes slow and the organization becomes inflexible – that is, unable to change and adapt to new development” (Jones, 2004, p. 108). To mitigate this barrier Sherman Computer Repair could decentralize authority and power and allow employees at multiple levels to make important decisions, keeping them accountable for their actions.
While expanding and incorporating computer assembly into their organizational plan, Sherman Computer Repair must be aware of these barriers and adjust their strategies, design, and their direction to continue moving forward. Each of these barriers can inhibit the progress or even initiation of new technologies, innovations, and processes. The organization must also take into account the external environment to continue to successfully complete their transition. Sherman Computer Repair External Environment “Organizations have always had and will continue to have boundaries” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. ). The external environment consists of suppliers, customers, and any other outside entity that functions is different and separate from the company they do business with. For there to be continued success through the company transition Sherman Computer Repair must recognize these external boundaries and reshape them to meet and exceed their expectations. “External boundaries are barriers between firms and the outside world – principally suppliers and customers but also government agencies, special interest groups, and communities” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 1). These boundaries are a boundary or an imaginary line drawn between the organization and any outsider. These barriers can be legal, psychological or cultural and establish a we-they relationship between the company and the external entity. “When there are several customers or suppliers, one may be played off against another” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). Since Sherman Computer Repair will most likely have multiple suppliers and customers, they have the opportunity to play them against one another. External boundaries do provide positive identity for insiders, they also diffuse effectiveness” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). Each stakeholder in the organization (whether it is internal or external) wants Sherman Computer Repair to achieve success both in their current and future organizational direction and design. The customers can aid in the resolution of problems to help an organization succeed and the suppliers want to see their customers succeed because their success means a greater success and sales for their company.
Geographic boundaries are another external boundary that Sherman Computer Repair will need to pay extra attention to. “Geographic, or global, boundaries exist when firms operate in different markets or countries” (Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). With Sherman Computer Repair tackling the industry share that Synergetic Solution Inc. left, they must learn to develop relationships geographically to continue to succeed, making decisions that foster those relationships is key.
Often stemming from national pride, cultural differences, market peculiarities, or world-wide logistics, geographic boundaries may isolate innovative practices and good ideas Ashkenas, Ulrich, Jick & Kerr, 2002, p. 11). In not being astute to the geographic boundaries Sherman Computer Repair may halt success of the organization. The strengths and weaknesses of the external environment must be considered in order for Sherman Computer Repair to make changes to their current organizational structure.
They company as a whole must understand their clients want and needs and must be able to address their concerns or complaints expeditiously. They must pay close attention to customers and suppliers as they are their key to success and process and organization improvement. Sherman Computer Repair must also address each of the external boundaries in order to transform their organizational structure. The geographical boundaries are important to the viability of the company as they transform their organization and move into other countries markets.
Each of these external boundaries must be assessed and the talent and skills of the organization must be evaluated to determine the future success of their contributions. Sherman Computer Repair Talent Recognition In order for innovation to be successful in an organization a culture must be adapted where creativity and innovative thought processes are fostered and supported. “One of the main approaches to ensure that innovation is successful in the organization is to develop an internal marketplace where the ideas and functions of innovation can flourish in a supply-and-demand environment” (Davila, Epstein & Shelton, 2006, p. 8). Sherman Computer Repair is lacking the talent needed to take Synergetic, Inc place in the computer assembly market. Sherman must take a look at the talent they possess and expand on the skills of its current employees in order to succeed. Obviously they will have to expand on their workforce but in placing an emphasis on the talent they currently have a greater impact will be made on the organization as a whole. By expanding on the talent that Sherman Computer Repair currently possesses a motivation will be instilled in the employees.
This strategy is crucial in the success of the company’s transition and Sherman must motivate their employees to understand and be an active part in the future progress and success of the organization. “Performance management, including rewards and incentives, are some of the most powerful management tools available to a company” (Davila, Epstein, & Shelton, 2006, p. 179). Sherman Computer Repair currently lacks a reward or incentive program and the development of a system may be crucial in their new direction.
Through careful consideration, Sherman Computer Repair must develop a plan that not only motivates employee behavior and performance but also fosters growth and innovation within the company. This reward and incentive plan would steer employees towards more productive and innovative tendencies and allow for a more accountable work environment. In creating a plan for a reward and incentive program, Sherman Computer Repair must set goals, on both an individual basis and team or departmental basis, and directly relate those goals to pay for performance.
Employees at any level are more likely to actively participate in the achieving goals in an organization if incentives are given. Sherman Computer Repair, through the development of a reward and incentive program, will not only motivate employees but also allow them to expand on their current skill sets by thinking out of the box to create innovative processes that will further advance the company towards its goals. With the expansion of the Sherman Computer repair into a new market there is the need for a larger workforce, bringing people into the organization with experience in innovation. Research into hiring for innovation suggests that a more effective strategy may be to sometimes hire the wrong people, the people who make some people feel uncomfortable during interviews, the people perceived not to fit perfectly into the organization’s culture” (Davila, Epstein & Shelton, 2006, p. 254). In making use of this strategy Sherman Computer Repair can increase creativity and innovative thought all across the board. In addition to adding innovative people to their labor force Sherman should also hire on people with the skill sets necessary to help accomplish their new direction.
With a combination of innovative, creative, and highly skilled people Sherman Computer Repair can overcome any challenge regarding innovation and succeed. Sherman Computer Repair Barriers to Change There are several barriers to change that exist within the company ranging from the manner in which management responds to new ideas, allowing ideas to be expressed freely without the fear of criticism, and the lack of support for innovators by management. “Organizing for innovation continues to be a challenge for many companies” (Davila, Epstein & Shelton, 2006, p. 7). Sherman Computer repair must create a culture where ideas can be free flowing and can be supported at all levels of the organization. With the company growing and there being several levels of management the company must concentrate on developing new products and services and fostering a creative environment. Sherman Computer Repair could also make use of external resources for instance outsourcing their innovative processes or the seeking out of qualified candidates for the innovative positions developed within the company.
Through the decentralization of management there will be go to people at multiple levels to create arenas for innovative thought processes. Innovation platforms cut across the business unit silos and provide an honest perspective on the value of the innovations, rather than one limited by the perception of a single business unit (Davila, Epstein & Shelton, 2006, p. 98). Each of these platforms would contain innovative personnel hired to inspire and promote creativity, risk taking, and innovative thinking in others.
Each level would have their own projects but all working towards the same goal; this is where management would align these projects. As Sherman Computer Repair enters a new direction they must treat innovation as a normal daily activity in the workplace. In treating this as part of everyone’s position and rewarding and compensating risk taking and innovation could prevent organizational antibodies. Rejuvenating the innovation process requires a significant change in mindset, requires support from top management, and a reallocation of resources (Davila, Epstein & Shelton, 2006, p. 9). In being committed to innovation the organization creates a welcomed environment for idea sharing and the development of its employee’s skills. Conclusion Change is a part of life and is necessary in every organization. With Sherman Computer Repair moving from computer repair to computer assembly the need for change is evident and there is always resistance from some regarding this change. In designing an organizational structure and developing a culture that supports innovation and creativity that change can be supported.
Sherman Computer Repair must make changes and additions to its labor force, its organizational structure, hierarchy of control, and technology. They as a company must also support creativity and innovation at all levels through the implementation of motivational incentives. Sherman Computer Repair can succeed by effectively and efficiently managing the barriers to change, gaining the talent they need to become a successful computer assembly company. References Ashkenas, Ulrich, Jick and Kerr (2002).
The Boundaryless Organization: Breaking the Chains of Organizational Structure, 2ed. Retrieved March 14, 2009 from University of Phoenix rEsource MMPBL 550- Creativity, Innovation and Organizational Design Course Website. Davila, Tony. , Epstein, Marc. , and Shelton, Robert. (2006). Making innovation work: How to manage it, measure it, and profit from it. , New Jersey: Pearson Education, Inc.. Retrieved March 08, 2009 from University of Phoenix rEsource MMPBL-550 – Creativity, Innovation and Organizational Design Course Website.
Jones, G. (2004). Organizational Theory, Design, and Change. New Jersey: Pearson-Prentice Hall. Retrieved October 23, 2009, from University of Phoenix, rEsource, MMPBL 550- Creativity, Innovation and Organizational Design Course Website. University of Phoenix. (2009). Human Relations and Organizational Behavior: Organization Structure, Synergetic Solutions Scenario. Retrieved October 23, 2009 from University of Phoenix, MMPBL550- Creativity, Innovation and Organizational Design.
