Appex corporation
Appex Corporation
Overview
In 1988 Appex Corporation was a relatively small entrepreneurial company, with loose structure and started to lose money. As a result, Appex has spent the last 3 years developing and trying out new organizational structures as it changes from a small organization of only 25 employees to a large one which is estimated to be growing by 50% every six months. In order to do this they have recruited Shikhar Ghosh to the position of COO with the promise of the CEO position in the future, at BCG Ghosh’s specialty was organizational structure, particularly how to create rapid-response organizations. Then each of these structures implemented by Ghosh has revealed strengths and weaknesses after they were implemented and as 1991 approaches it is time for another change. The purpose of this paper is to show that a transition to a more strict bureaucratic system is essential for as the company as it is getting larger in size. When the company is later incorporated into a larger organization this would also facilitate such a move by more easily integrating into the new parent company’s existing bureaucracy.
The key problem facing Shikhar Ghosh upon arriving at Appex is the chaotic condition of the company’s current structure. What was once a tight-knit group of employees is now a group of people with no clear job responsibilities or work ethics. He reports that “Everybody just did what they felt like. For instance, customer service people were supposed to start at 8:00 AM. They wouldn’t arrive until 10:00 AM, but they would work until 2:00 AM. Everybody did things on their own time, and the attitude toward the customer was-“we’ll call you back.”
Ghosh in action
The cellular industry was booming and Appex found themselves having to recruit new employees at a rate of ten new employees per month. Ghosh restructured the company about every six months each time that the company grew by fifty percent. He started by trying a circular structure
Overview
In 1988 Appex Corporation was a relatively small entrepreneurial company, with loose structure and started to lose money. As a result, Appex has spent the last 3 years developing and trying out new organizational structures as it changes from a small organization of only 25 employees to a large one which is estimated to be growing by 50% every six months. In order to do this they have recruited Shikhar Ghosh to the position of COO with the promise of the CEO position in the future, at BCG Ghosh’s specialty was organizational structure, particularly how to create rapid-response organizations. Then each of these structures implemented by Ghosh has revealed strengths and weaknesses after they were implemented and as 1991 approaches it is time for another change. The purpose of this paper is to show that a transition to a more strict bureaucratic system is essential for as the company as it is getting larger in size. When the company is later incorporated into a larger organization this would also facilitate such a move by more easily integrating into the new parent company’s existing bureaucracy.
The key problem facing Shikhar Ghosh upon arriving at Appex is the chaotic condition of the company’s current structure. What was once a tight-knit group of employees is now a group of people with no clear job responsibilities or work ethics. He reports that “Everybody just did what they felt like. For instance, customer service people were supposed to start at 8:00 AM. They wouldn’t arrive until 10:00 AM, but they would work until 2:00 AM. Everybody did things on their own time, and the attitude toward the customer was-“we’ll call you back.”
Ghosh in action
The cellular industry was booming and Appex found themselves having to recruit new employees at a rate of ten new employees per month. Ghosh restructured the company about every six months each time that the company grew by fifty percent. He started by trying a circular structure