Introduction A company’s success is measured by how well it is structured and organized in order to adapt to the changes in environment as well as the changes within itself such as the company’s scale, employees, product scope, etc. Having a suitable, well-structured organizational frame will not only increase the chance of being success but also prolong the company’s lifespan compared to an un-structured one. It is important to note that an organization’s structure needs to fit in with the current situation and does not necessarily required remain unchanged over time. Taking Dynacorp as an example, even though its functional structure contributed to the vast growth of the company at the start, its limitation in dealing with the changes within …show more content…
It is widely recognized by the customers for introducing a variety of innovative and high-quality products to the market while the competitors could not do the same. “During this period of time, the company grew at a very fast rate and expanded its market to Europe, Asia, and Latin America” (dynacorp case study). However, Dynacorp’s glory did not last long. The company started to face many problems while its competitors began to close the technology gap and gained back the …show more content…
The problem is, in Dynacorp, not only the amount of employees had significantly increased but the product scope had expanded as well. With thousands of employees working together under the same environment and several product lines on the market, at this point, with three divisions working toward different goals based on its own specific fields, Dynacorp had actually developed a boundary among the divisions. And this separation was deepened as the company expanded bigger. “Dynacorp’s current organization had serious shortcomings” (page1). The lack of integration between divisions is a result from the fact that the organizational structure did not meet the company’s expectation. One alternative design I would suggest in order to target the problem existing in Dynacorp is by switching from functional structure to product divisional orientated structure. With this structure, the company would be divided according to the product lines it offers on the market. In other words, Dynacorp will be separated into product-based multifunctional divisions including: Manufacturing, Engineering, and Marketing with a general manager in charge of running the unit (from product development to after-sale service); also they all are required to contribute to the same final