THE MOST CRITICAL ISSUE CURRENTLY FACING MANAGEMENT OF AIRSTAR INC.

University of Maryland
Organizational Theory, MGT 610
6 October, 2008

The most critical issue currently facing management of Airstar Inc, in my opinion, is lack of effective communication and efficient organizational structure. The nation’s current economic standing is requiring companies to remain extremely competitive in order to survive and without effective communication and efficient organizational structure many fall apart. I chose this topic because companies are suffering as is evident through reports of huge job cutbacks and closings of several stores and manufacturing plants.

The economic standing of the United States has changed drastically within the last year due to varying factors such as the War in Iraq, heavy natural disasters and unethical practices from major financial institutions. All these significant factors combined are causing businesses to experience huge burdens just trying to maintain simple day-to-day operations. It is vital for a business to have effective communication and efficient organizational structure in order to succeed.

Airstar Inc. must use this crucial time to analyze their business practices and organizational structure, streamline operations and come up with ways to increase productivity. Management has to ensure that everyone within the company understands the company’s goals and is willing to work together to accomplish those goals. Conflict between departments has to cease and guidance must come from top management. The company’s organizational structure must be clearly defined to all employees and everyone should understand what their specific duties are and how to accomplish those duties. Then, and only then, will Airstar Inc. be able to compete and maintain its presence in the current market.

The previous company founder allowed a laissez faire attitude to exist throughout the company and it has proved to be damaging. In a dire market companies with a solid foundation survive while the weaker ones wither. The new president of Airstar Inc. recognizes that a problem exists and that effective communication and efficient organizational structure is key, in order for the company to have a secure future!