Hello, Roger! We’ve been asked to prepares suggests a new company’s structure to bear with the problems the new world puts before the company, including trend towards sustainability, epidemics, and hectic competition. The analysis of the current structure helped to identify two central problems. First, current higher management positions are occupied by people who have been in business for quite a long time and have difficulties accepting new ideas. Second, Flamingo Air and Millennium Airlines have grown apart in their operations, HR strategy, and financials need to take different directions. I am showing you the ideal organisational structure on the screen now so that you can see what I mean.
Ideal Organisational Structure
We decided that divisional structure was the most appropriate for the company, as there are two clear divisions, including Millennium Airlines and Flamingo Air. We see Clarence Bigg as the CEO of the company. The central idea of putting Clarence Bigg in charge is his ability to make informed decisions based on numbers and quantitative assessment. In other words, we see Mr. Bigg as a person who can make decisions based on facts rather than anecdotal evidence.
We think that both divisions should be united by a common administrative support, information support, strategic management, and marketing. We see Linda Kenyon as most appropriate for administrative support, as she has the most relevant experience. Even though Karen Barlow seems to have low impact on the company due to shyness, we believe she is the most appropriate candidate for strategic manager position, as she has relevant experience and just needs more time and people to be able to demonstrate her abilities. Moreover, she may be able to shine if she is not pressured by the current elite.
Diana Forest appears the most appropriate for the marketing director position, as she knows a way forward for the company. Moreover, she has experience working effectively under Clarence Bigg. Ralph Inkspen appears to know that the company needs to patch its current legacy systems to integrate with a new CRM system, that can help to work with the partners.
We put Julie Penbethy as general manager of Millennium Airlines. We believe that she can innovate without a fear to be mocked by the current elite. However, it is crucial that Ms. Penbethy is guided by a person who can make informed decisions. The general manager of Flamingo Airlines will Leon Campton, as he has enough experience and can enjoy the freedom to boost Flamingo’s performance.
The financial director in Flamingo Air should be Naresh Singh, as he can cut cost in the most efficient manner. The financial director of Millennium Airlines should be Clem Struthers, as he has enough experience in the area and more open to innovation.
The HR director of Flamingo should be Jan Obi, as he has enough expertise in the area. Moreover, Jan and Leon have created a nice duo that can the company to grow. The HR director of Millennium Airlines should be James Jarvis, as he has experience in team building and innovative approaches to HR management. As for operations management, we see that Grace Cavusgil is the most appropriate candidate. She has been inspired to work with Julie and can bring innovative solutions to the operations. Audrey McComish should take operations management in Flamingo, as she can work well with Naresh and can make effective decisions to cut costs, which is crucial for the low-cost segment.
While the structure provided above would be ideal, there are some issues with the internal politics that should be considered. Therefore, we recommend a slightly different structure. I am switching to the recommended structure for you to see.
The updated structure allows the divisions to have separate marketing teams, as Leon needs to create his own marketing campaign to expand. In the recommended structure we have Clarence Bigg as the CEO, Linda Kenyon as administrative support, Ralph Inkspen as head of the IT department, and Karen Barlow as the strategic manager. Leon Compton and Jan Obi also occupy the spots of Flamingo Airlines GM and HR correspondingly, while James Jarvis occupies the spot of the HR director in Millennium Airlines for the reasons I explained previously. However, we see Nagesh as the general manager of the Millennium Airlines as the man has enough experience and support from staff. Moreover, getting rid of the elite at once would be too dangerous. As a result, we recommend Audrey McComish to be the head of Millennium Airlines finances, as she works well with Nagesh. The marketing director of Millennium Airlines should be Diana Forest, as she has experience of working effectively in marketing. Clem should start working in finances of Flamingo and work his way up to working in Millennium Airlines. Claire Moore has very large experience in marketing and can be promoted to the marketing director of Flamingo. Such restructure should be the first step towards the ideal structure of the company.