The paper “ Airstar Company’ s Contextual Problems - Unclear Risks, Lack of Communication, and Unclear Organizational Goals" is a worthy version of a case study on management. The purpose of this study was to take a critical analysis of the situation at Airstar Company which has resulted in a decline in performance and efficiency and thereafter write a report including the recommendations that can be used to offer a solution to the problem. This analysis has found out that organizational design is the source of declining performance and efficiency. This is because it has forced the company to operate in disintegrated organizational structure and strategy where goals, duties, and responsibilities are not clear.
Some of the management issues that have been identified and that related to a poor organization design include lack of appropriate communication channels, lack of clear tasks and unclear company goals and objectives. In general, this report has found out that the success of any organization greatly depends on the effectiveness of its organizational design. This is because the organizational design must be holistic and must take into account the various components such as people, company structures, organization processes, and processes and how all of them can interact effectively to realize the predetermined organizational goals and objectives.
Finally, three main recommendations have been framed to help solve the problem at Airstar and they include: agreeing on organization design criteria, identifying the appropriate operating models and focus on good governance. Despite the efforts being made by many organizations to come up with a clear shape of the company, it is emerging that factoring in different processes, activities, and people, is becoming a big challenge.
Organizational design is what defines the business and its operations. Because of the various factors that are involved in making up an organization, the design is expected to facilitate coordination and close relationships within an organization. In simple terms, the organizational design has defined the process of put aligning factors such as processes, people, coordination activities, control mechanisms and lateral connection of an organization to its structure in order to suit in the operating environment (Romme 2003). Organizational design is important in ensuring that an appropriate organizational structure has been developed and that accommodates all other factors and that which allows for strategizing to realize the company objectives.
With this regard, therefore, organizational design identifies all the processes, activities, functions, processes and activity control measures that are integrated and allowed to flow in a logical way. However, without proper organizational design, the organizational structure and strategy are likely to be on disarray and even there will be no single acceptable flow of activities (Frans et al 2000). It is with this regard that this analysis has embarked on a mission to establish how poor organizational design can lead to a decline in performance.
This analysis will refer to Airstar Inc. 1.1 Company background informationAirstar Company as an organization operates in the aviation industry. The company business is manufacturing, repairing and replacing pistons and engines of small aircraft. In the industry, the company for over years has enjoyed a lot of support in the market because of its brand recognition which enabled the company to have a positive reputation. However, this was all because of the company’ s strategy of establishing a solid market niche.
While serving the company market niche, top of priority was quality services and this was demonstrated from the company’ s ability to superior quality, safety, and customer service. This strategy did a lot of good for the company in terms of market growth and revenue generation. However, with the change in leadership after the death of the company founder five years ago, the company has experienced some difficulties more especially in performance and efficiency. The company problems have also been made worse with the stiff competition from General Electric and Pratt & Whitney.
Reduction in the orders by the customers is a clear demonstration of how the company was performing under the leadership of Roy Morgan as its president.