APPEX CORPORATION
INITIAL STRUCTURE
Advantages
• Informal and fluid
• Close interaction between
focussed, committed and
hardworking employees
• Responsive to consumer’s needs
• Things got done cheaply
Disadvantages
Employees working on more projects as
company grew
• Increased workload
• No accountability
• No reporting structure
• Reduced quality of customer service
• Redundancy in operations – different
employees doing same work
• No financial planning
• Fire fighting mentality
CIRCULAR STRUCUTRE

WHY THE TRANSITION?

• Sharply declining productivity
• Decision regarding payment of
employees
• No clarity about who should attend
which meetings in the initial structure
• Accountability required
 CIRCULAR STRUCTURE
FEATURES:
• Aimed at creating
information flow while
maintaining the informal
structure
• Inner circle had the senior
managers
• Outer circle had the
functional managers and
their employees
• Customers formed the
outer environment
ADVANTAGES: DISADVANTAGES:
• Free flow of information • Employees could not relate
• Continuous flow of • New hires confused about
information delegation of power and
• Non hierarchical as the their performance
previous structure evaluation
• Responsive • Did not answer any
questions or achieve
anything
• Only responsive – did not
provide for planning