Sherman Computer Repair New Direction

Sherman Computer Repair New Direction This paper will examine the Sherman Computer Repair Company and their external environment. Sherman Computer Repair (SCR) is an undersized company that repairs damaged computers. At present, SRC has three business locations where patrons can purchase repairs on broken hardware. At the location of all three business sites SRC employs three full-time computer techs, one on-site manager along with one receptionist. In addition, SRC also employs 12 mobile techs that provide SRC customers with the choice of reliable in house repair service. Sherman Computer Repair wishes to broaden their horizons by embracing computer assembly to fill the void left by a competitor called Synergetic. Sherman's approaching progress into the industry of computer assembly is one that carries risky implication for them. Sherman Computer Repair must first hire a new professional staff and obtain new technological expertise to make their company transformation successful. This paper will analyze how SRC can meet their goals and grow from the future business prospect.
Sherman Computer Repair Organizational Design The Business Directory defines organizational design as formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure is found to determine the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between the many levels of management. This structure depends entirely on the organization's visions, objectives and the strategy chosen to achieve them (The Business Directory, 2010). The structure of the Sherman Computer Repair business will operate as the backbone in relation to their decision making processes. Determining early the type of organizational system SCR wants to implement will aid to alleviate the stress of the new start-up business changes. When each SCR employee in the organization knows what he or she is supposed to be doing, there is less room for poor judgment, conflict and confusion. Setting up a define structure before important shots are called makes a difference. Sherman Computer Repair’s most important task is to redesign the company’s organizational structure to shift from the current departmental structure to a new advanced team-based structure. Another important task Sherman will need to conquer is developing new HR policies and programs to aid and educate current SCR employees and management in the making of the transition. A functional structure is a design structure that groups people. A company organized with a functional structure group’s people into functional departments together such as finance, purchasing, accounts, engineering, production, sales, and marketing because they have similar skills, expertise, or use the same resources familiar to them. Functional structures are perhaps the most common organizational model used by companies. The functional structure has the advantage of being straightforward and simple, but there are also disadvantages to functional structures too. Employees and managers have to tread carefully because this form of organization is prone to interdepartmental conflict, often degenerating into 'them and us' disputes. Unity and good communication are particularly hard to achieve between virtually independent functions. Sherman needs a new organization structure because the organization needs to implement the production of its new product, assembled computers, in a way that satisfies market demand efficiently and profitably (Jones, 2004). Sherman must create and enforce a more complex structure in order to control the companies new raising complex needs. Sherman's current functional group structure is an obstacle to the attainment of new technological expertise needed to make this company change a success. The company can alleviate these obstacles by taking into consideration its external environment and problem-solving Sherman's strengths and weaknesses. Functional organizations have the strength advantage of being simple to understand with clear lines of command, specified tasks and responsibilities. Sherman Computer Repair staff can specialize in a particular business area such as production or marketing and follow a well-defined career path. This is equally true of human resource specialists who can develop expertise in specific areas such as employee relations or reward management. Through better organizational design SRC can ensure the success of the new structure change by using its strengths to counteracting its weaknesses.
Sherman Computer Repair External Environment All outside factors that may affect an organization make up the external environment. An organization's external environment has three components • the remote environment • the industry environment • the operating environment The remote environment is the ecological, political, social, and technological factors or forces that affect a form's decision making abilities and freedom, but are beyond its control or influence. The Remote environment for Sherman Computer Repair is the social, technological, economic, ecological, and political factors in the US market. The operating environment is to include customers, labor, competitors, and suppliers. The industry environment consists of entry barriers, buyer power, supplier power, substitute availability, and competitive rivalry (Pearce & Robinson, 2005). The US economy is nearing a recession. This on coming recession presents a disadvantage for Sherman Computer. Sherman Computer Repair’s economic decline makes it hard to sell personal computers. Computer sales are the main component of the technology industry that SCR is working so diligently to enter. The reported sales of computers dropped worldwide after the economic recession occurring in 2000. The drop in sales is a drawback for SCR. Through choosing to be a learning organization instead of a ladder SCR can overcome this onset. The learning organization focuses on enhancing its systems (including people) to continually increase the organization's capacity for performance (McNamara, 2010). Another component in SCR remote environment is that of technology. Computer technology is constantly advancing and newer operating systems require computer hardware with increasing power to properly function. Many workers in the computer manufacturing industry are research scientists, technicians, and engineers who work continually and specifically to expand new products or to improve their existing ones. Sherman Computer Repair must become a learning organization as well, where workers are buoyant to create, learn, and present new innovative ideas. Sherman Computer Repair’s fast-changing technology environment this team structure is best qualified to be employed. Sherman Computer Repair has selected to go into the computer assembly market by building the new organization step by step, floor to floor, worker to worker. This is a good choice for Sherman because its chosen industry is parallel to its existing business. Using the internal development entry approach will permit Sherman to resourcefully leverage the organization’s existing resources into the new business which will lower the company’s total starting costs. Sherman Computer Repair should design its organization structure where all employees have learning opportunities and all employees work in efficient teams always feeling comfortable to express their new ideas and feelings. Most computers are built by a small group of recognized brands in Sherman Computer Repair's operating environment; however there are many small companies selling products online or locally. This means that their customers have many choices. Sherman must execute thorough marketing research to gain intelligence and knowledge of what customers want and for how much they are willing to pay. Computers are very complex products. Since Sherman Computer Repair plans to assemble computers out of parts manufactured by others, SCR’s success will rely on creating and maintaining good relationships with the suppliers of their parts that will be keeping their business reputable. Good parts with good prices will guarantee quality products permitting SCR a strong profit margin. In addition, SCR needs to have more than one supplier; the more suppliers SCR can acquire the less power each supplier has to control SCR’s business market negatively. A learning organization will let SCR be able to pin-point supplier problems early so that they can be resolved before any harm to business is done.
Sherman Computer Repair Talent Recognition Companies can be classified to their organizational structures. Other variables companies can be classified to be to the nature of the projects undertaken. We characterize projects by the number of employees needed to perform the tasks, or workload, and the number of tasks that are fundamentally different in nature. There are several organizational structures that SCR can choose to apply to their organization. . To conquer the SCR’s operating environment challenges; the SCR's managers must divide organization responsibilities needed to be performed. After composure of these tasks is created and divided then SCR should hire workers whose abilities matched those tasks. SCR can move from a functional structure to a divisional structure: a product structure, a market structure, or a geographic structure. Product team structures maintain focus on the merchandise being produced. Teams of useful specialists are structured around the product to speed up development. To create a better organization product team structure is the organization structure best suited for SCR. SCR must renovate and advance to deliver a new product. SCR needs to hire research engineers, scientists, and computer technicians including many electrical experts. This team approach will have many rewards. Lower level employees will gain more responsibility. Morale will rise as team members become more motivated to partake in the process of change. Cross departmental cooperation will begin to increase as department segregation walls are alleviated. The team approach also lets the organization hear and comply to customer requests and complaints.
Sherman Computer Repair Barriers to Change Sherman must take into consideration that the team approach will come with some disadvantages. The team approach requires a lot of time and proper resources. More meetings will be required to take place often taking away from production. Since there is an increase in decentralization in the team approach, teams may stray from the goal and commit to decisions that will help their teams but in due course harm the organization as a whole (Jones, 2004). These infractions can be controlled through the hiring of skilled managers. In time, as the number of products and product team’s increases, SCR can grow its organization structure to better coordinate matrix team production. The Matrix structure group is a special kind of structure that is obtainable when an organization needs to deal with technically advanced products in fast changing markets (Jones, 2004). Matrix structure will be a good advance for SCR because they will need to quickly develop and market new and technically advanced products. The matrix will enable communication between all team members inviting an innovative cross-over of thoughts and ideas. Sherman can alleviate risks by using the tool of communication throughout the organization instead of limiting communication to certain departments and management.
Conclusion
Transformation is an ongoing process for organizations maintain to keep their competitive edge in today's rapidly changing market. Management requires having a clear vision of company goals and ways to which the company can grow. Having a proper strategy to maintain how business functions work and how they can be advanced is the main key. If management does not coordinate education with company goals the organization does not stand a chance. The matrix structure embraces communication and team work. Sherman Computer Repair needs this kind of structure to broaden their horizons to include the incorporation of computer assembly. Sherman Computer Repair needs this kind of structure to assist current employees with change and to create an innovative participation pool of future employees. Sherman Computer Repair impending progress into the industry of computer assembly is one that carries risky implication for them. Although change is difficult, change is going to necessary for Sherman Computer Repair to continue being a profitable growing industry.
References
Apollo Group, Inc. (2003). Organization structure. Simulation retrieved from class rEsource page September 13, 2010.
Business Dictionary (2010). Retrived September 11, 2010 from online source http://www.businessdictionary.com/definition/organizational-structure.html#ixzz0yoccnIfP
Carter McNamara (2010). The Learning Organization. Retrieved on September 13, 2010 from http://managementhelp.org/org_perf/org_lrng.htm.
Jones, G.R. (2004). Organizational theory, design, and change. Upper Saddle River, NJ: Prentice-Hall, Inc. / Pearson Education.
Pearce, J. & Robinson, R. (2005). Strategic management: Formulation, implementation and Control. 9th ed. New York: The McGraw-Hill Companies.