The structure employed in the company

Centralised and existence of different structures (e. g. functional, product-based, geographical and matrix) is one of the reasons for the success of organisations ought to be related to the structure employed in the company. Airgen can build itself on centralised control over a functional structure.

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It is viable as workers groped together will perform similar tasks and technology; also products will share common production methods and technologies and it allows employees to become highly specialised in their work.(e. g. the jobs will be organised into separate divisions into production, marketing, sales, finance etc. )

If Airgen is to choose the functional structure (above) which I would highly recommend it since the expertise of the different group divisions is shared relating to the technology and materials within their divisional departments and is accessed more efficiently, it will also avoid the duplication of jobs (e. finance department for the three products and different sale areas rather than several) and it will therefore economise the company; having this organisation structure will make recruitment, training and motivation of professionals easier, as this was the problem facing Modern Sales plc (A, B, C Ltd) from the beginning.

There could also be a drawback from having this organisation arrangement, since being a manufacturing company and producing products using continuous processes the organisation will focus on the internal processes, rather than by outputs and customer demands.

Communication problems within the different specialists may arise, since they will create their own culture and language in their different departments. Airgen could also group their activities by their product, manufacturers are structured on the basis of their production, and although all workers are working for the same product in the business they are further divided into their own divisional departments. (e. g.maintenance, purchasing, quality control, research and development)

Product-based division is not one which I would recommend for Airgen plc as they have merged to work together and get as much out of the business as possible and having this structure will increase the overhead costs as there has to be individual provision for each department and the danger of attempting to become too autonomous can result in a problem of coordinating and controlling the business, as the different production divisions may fail to share resources and customers with other product divisions, and if this is to happen they will end up how Modern sales plc was.

There are also many advantages in a product-based division, accountability is one of them as individual managers can be held accountable for the profitability of individual products, also job specialisation can be detected here as workers can be trained to produce a specific product in which they may develop technical expertise and thereby offer a better product to the customers.

In the production department the different functional activities and efforts required to make the product can be well coordinated and incorporated by the product manager. Since Modern Sales plc specialise in the worldwide distribution of products there could be a good reason for having a geographical structure since the day to day operations (e. g. distribution) are handled on a territorial basis according to the regional origin and yet some authority is retained at Head Office.