Aquarius Advertising Agency - Case Study Example

Running header: Aquarius advertising agency Student’s name: Instructor’s name: Subject code: Date of submission: Executive Summary An organization structure is a powerful determinant of the extent to which the organization succeeds in its goals to offer quality and timely services to its customers. This is because it defines the relationship between its various internal stakeholders as well as its clients. Channels of communication are also defined and laid down in the organization structure. As such, an organization should endeavor to have an organization structure that leads to the overall success of the organization. However, this does not seem to be the case at Aquarius where a number of problems have been identified to result from its weak organizational structure. Some of the problems identified include lack of unity among the various stakeholders. There is also communication breakdown as well as the inability of the organization to be flexible enough in order to promptly respond to changing environment. As such, the organization risks loosing its place to other agencies that are more flexible in responding to these changes. It is for this reason that this paper recommends that the organization needs to change its organizational structure so as to deal with the weaknesses identified. The paper identifies four alternative structures that the company can adopt. These are functional structure, horizontal structure, matrix structure as well as divisional structure. The paper examines each of the structures with regards to its merits and demerits. Finally, the paper recommends that the organization should adopt a matrix structure due to its flexibility and ability to give a teamwork approach to the organization. Letter of transmittal Your address Dear (the instructor’s name) In compliance with fulfilling of the requirements of this subject, I would like to present this report entitled Aquarius Advertising Agency Organization structure in accordance with your instructions. The main purpose of this report is to analyze the weaknesses of the current organization structure of Aquarius advertising agency as well as recommendations for a change of the existing hierarchical structure to a new matrix structure. I hope that this report will meet your approval. Yours sincerely, (your name) Introduction In order for any organization to succeed it must have a very good organizational structure. This is due to the fact that it is the structure that guides every member of the organization in what they do and how they relate with one another. The structure also determines the flow of power and authority within the firm in addition to guiding the relationship between the firm and the outside environment. Members of the organization need to have clearly spelt out roles in order to eliminate confusion and encourage cooperation between various stakeholders (Houston, 2010). Firms also ought to be flexible enough in order for them to be able to respond to the ever-changing environment promptly. However, it should be noted that the presence of a good organization structure does not necessarily imply organizational success. A good organization structure should be strictly adhered to if it is to be of any help to the organization. However for Aquarius, this has not been the case. Despite having a weak organizational structure at Aquarius, it has not been strictly adhered to. The structure has resulted in a lot of bureaucracy and rigidity that robs the agency the ability to promptly respond to the ever-changing environmental needs (Daniel, 2010). Lack of adherence to the laid down channels of communication by specialists only serves to complicate the issue with the accounts executives feeling overlooked. It is for this reasons that the organizational structure of Aquarius advertising agency need to be urgently changed and adhered to in future. Although there are many alternatives for a new organization structure, Aquarius will be better placed if it adopts a matrix structure as will be explained below. Key organizational issues of Aquarius agency The current organization structure has created a hostile environment for the company to operate in. consequently, there is communication breakdown within the company where the structure’s hierarchy is not being strictly adhered to. For instance, other agency specialists bypass the account executives.( Stanley, 2005)This waters down the company’s reason for having hired the accounts executives to oversee that customers/clients have their needs well catered for by the agency, and have their accounts closed. By the specialists ignoring the accounts executives, it makes the executives not to be aware of what is happening to customer’s accounts given to him/her by the company to take care of. By so doing, the clients can either get substandard services or have their services rendered without remitting payments to the company. In both cases, the company stands to loose. Furthermore, the company risks finding itself operate without the executives in future if the situation is to be allowed to continue. As such, the situation renders the environment at Aquarius doubtful and unsteady as well. The goals of the Aquarius specialists seem to contradict with the overall organizational goals (Stanley, 2005). Given that each specialist wants to have his or her idea bought by a customer, its hard to meet the overall agency goal. It is clear that Aquarius aims to increase the flexibility with an aim of meeting changes and enabling cooperation between various departments responsible for meeting customer needs. With the current environment of no cooperation between the various stakeholders as well as communication break down between the specialists and the accounts executives, it is hard for the agency to meet its future goals. However, were the experts to be decent to adhere to the laid down procedures when engaging clients, the company’s goals will certainly be met. The current organization structure at Aquarius does not seem to have the required flexibility to enable the organization effectively meet the ever-changing consumer requirements. For instance, the turnover the company has been experiencing is evidence of the fast changing trend in the industry. The researchers therefore have to come up with ways of harnessing new technologies with an aim of meeting the ever increasing consumer demand. This however has to happen fast although the company aims at slowing down its response time to change. Otherwise, the company stands to loose its clients to better adapted agencies. However, with lack of cooperation currently experienced between the specialists and executives, this might not be realized.( Maxwell, 2007) Definition of Aquarius current structure and why it does not work The following figure shows Aquarius current organization structure. Aquarius current structure consists of multiple levels of command. It consists of large base workers who are supervised by smaller levels of authority above them who in turn are supervised by more senior staff. Consequently, authority and communication runs vertically within the company. Such a structure has a number of weaknesses and this is why it does not work in modern times. a) poor flexibility As it is being witnessed, the current structure is not flexible enough to enable the company respond quickly to the changing consumer needs as well as the increasing consumer demand.( Daniel, 2010)The many levels of bureaucracy in Aquarius may be inhibiting the much needed change. Organizations like Aquarius if not able to adapt quickly to new consumer demands and ever changing technology in pace or even faster than competing agencies risk being marginalized. This is why the company needs to urgently change its organizational structure. b) communication barriers /breakdown The quality of communication within an organization is a powerful determinant of success within the organization. However, there seem to be communication breakdown in Aquarius as various stakeholders are not cooperating. Furthermore, the laid down channels and procedures of communication are being by passed where account executives are being ignored. As such, helpful information is being withheld from the right people. As such, customers may be given poor quality services or the company may end up loosing some revenues to some clients. In both cases, the company stands to loose. Furthermore, it is hard to adapt to the changing environment if there is a communication breakdown and lack of cooperation. The structure should therefore be altered to enable effective communication between various stakeholders. (Joe, 1999). Organization disunity In order to ensure success, all members of an organization ought to pursue their goals as a team. However, this does not seem to be the case in Aquarius as some components of the team (account executives) are being by passed and hence the organization is disunited. As such, decisions seem to be made to benefit individuals (in house specialists) rather than benefiting the organization as a whole. This may eventually lead to the downfall of the company and hence it should be discouraged. The only way to do this is by coming up with a new structure that will enable all the stakeholders to cooperate as a team for the good of the company. Recommendations Alternatives The advertising agency has four alternatives from which to develop its new organizational structure. This includes adopting a functional, divisional, matrix or a horizontal structure. By adopting the functional structure, this will help in detailed leaning as well as skills development. The agency will also be able to accomplish its functional goals and hence be able to respond promptly to environmental changes (Shark, 2010). However, a functional structure is only best suited for an agency offering only a small number of products and hence will not answer Aquarius current setback of poor coordination and cooperation between different departments. On the other hand, a divisional structure may be the best option for swift change in unsteady environment and also may result to customer contentment as product accountability as well as call points will be made clear, this will result proper coordination between departments and provide adaptability to different products, clients and regions. However, just like a functional structure, it will lead to poor coordination between differing product-lines and reduce in-depth competency and technological specialization among different product lines. The agency can also adopt the horizontal structure which will lead to elasticity and quicker reaction to environmental changes. The structure is also likely to direct employees’ attention to high quality and value delivery to clients apart from giving them a broader view of the agency’s goals and promote team work and cooperation in meeting organizational objectives (Judy, 2009). However, the structure is likely to kill growth of the employees and may lead to managerial problems as it lessens the power and authority of the management. On the other hand, a matrix structure will help Aquarius attain coordination required for meeting different clients’ demands and offer flexibility in sharing human resources among different products. In addition, the structure will provide practical and product skill growth of workers and is suitable for average sized firms offering different products just like Aquarius (Ann, 2009). However, the new structure will need to be well explained to all stakeholders to avoid frustration and confusion among them. In addition, the stakeholders will have to advance their interpersonal skillfulness. The structure will as well be time consuming as it will involve disagreement resolution sessions and will also require great endeavor in maintaining power balance within Aquarius. Best structure Despite the dilemmas which may be associated with Aquarius adopting a matrix structure, it remains the best option for the agency as it will result in efficiency of the workers (Sarah, 2008). The proposed structure is as shown in the figure below; This is because under the structure, the employees will be answerable to more than one boss. The structure will also aid in improving the environment the employees are in. furthermore, the agency is assured that no underground talks will take place between clients and any other person since only accounts executives will be allowed to talk to them under the new arrangement. The matrix structure outlined above will ensure that fewer people are involved and that employees deliver quality services to clients (John, 2007). The structure will also increase flexibility and cooperation between among the specialists more so because for each project, the company will compose a team in charge for meeting the customer needs and generating ideas for capturing the customer trust in the agency (James, 2010). The team should consist of an account executive, an art and research specialist and creative personnel and will be headed by the account executive. No other employee apart from the account executive will be allowed to talk to the customer except if the account was closed and the job will progress. Furthermore, the project panel will be composed only if the account was entered into the business. This will enable only two departments to interact until the account is closed. Communication between the three departments however will start when production timetables are ready. Conclusion It is no doubt that Aquarius advertising agency is in desperate need of a new organization structure that will help it overcome the various challenges identified above. Not unless the agency urgently adopts a new structure, then it will be irrelevant in the current world of advertising and it risks loosing not only its customers but also its employees to other competing firms. Although four alternatives of new organization structure have been identified for Aquarius, the matrix structure has been found to be the best alternative. In coming up with the matrix structure as the best model, a number of factors have been considered. The factors include the firms ability to respond to the ever changing business environment, the ability of the firm to give its clients value for their money as well as the ability of the firm to attract and retain quality employees. The ability of the firm to compete with similar firms was also greatly considered. It is for this reason that Matrix structure has been recommended as the best structure for Aquarius. By adopting the structure, the firm is sure to succeed in dealing with its current challenges and even become better placed to succeed in the current highly competitive environment. However, despite the suitability of the matrix structure, the secret communication between clients and specialists will have to be discouraged if the structure is to be successively implemented. Despite the fact that the correspondences can not be eliminated immediately, a more severe strategy execution should be done. Those found violating the policy especially as regards unauthorized correspondences with customers ought to be punished/ warned by the administration. This way, the new structure is sure to succeed. References: Joe, P.1999, Fundamentals of Organization Structure. Jacksonville, Florida, University of Florida. Shark, T.2010, Organizational Theory, African human resource journal, 25 (3), 179-182. Judy, M.2009, Human Resource and Performance appraisal, World economic review, 5(5), 15-21. John, S. 2007, Fundamentals of Organization Structure, Cambridge University Press, London. James, K.2010, Practices of Management, Longman publishers: New York. Ann, N. 2009, Modern organization structures, American Human resources Management, 22(3), 18-25. Sarah, P. 2008, Organization theory and design, Macmillan, Sydney. Houston, M.2010. Organization theory. Rutledge, London. Daniel, M.2010, Human resource management: Improving employees’ performance, Prentice Hall, London. Maxwell, O.2007, Principles and Practice of Management, A problem solving approach, Oxford university press, Oxford. Stanley, C.2005, Fundamentals of effective management, Cambridge University Press, London.   Read More