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SS Technologies Inc., a 100% Canadian-owned Company was bought by Rick Brock-CEO and Keith Pritchard- President, in 1992. Previously, the same business was operated as a division of Sutherland-Schultz Limited and Rick Brock was its president
Answer the question of s s technologies inc. organizational design case study
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CASE ANALYSIS
S-S technologies Inc. (D) Organizational Design
S-S Technologies Inc.
BACKGROUND
Acquisition:
SS Technologies Inc., a 100% Canadian-owned Company was bought by Rick Brock-CEO and Keith
Pritchard- President, in 1992. Previously, the same business was operated as a division of Sutherland-
Schultz Limited and Rick Brock was its president.
Organizational Dilemma:
The company was growing rapidly and in the past three years it had grown at an average of 33%. Thus,
there was an exigent requirement of an effective and appropriate business model so that the employees be
properly motivated and the growing structure of the company be effectively formed. For achieving this
purpose the CEO hired consultants to dig into the current organizational dilemmas and come up with
effective solutions.
Company Expansion:
To design an organization that would contemplate an expansion to double or triple SSTs current size.
What were the best structure, performance appraisal, compensation/bonus plan, company polices, and
partnering program that should be implemented?
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Organizational Structure
Best Structure:
The best organizational structure for S-S Technologies Inc. which allows SST to grow successfully is
Matrix structure.
Matrix structure:
‘An organizational structure that facilitates the horizontal flow of skills and information. It is used mainly
in the management of large projects or product development processes, drawing employees from
different functional disciplines for assignment to a team without removing them from their
respective positions’.
This structure helps SST to
Respond more quickly to changes in the business environment.
Achieve a higher degree of readiness and market adaptation.
Increase the ability to react to new customer demands.
Operating in fast paced and dynamic environments.
Differentiate into whatever functions are needed to accomplish certain goal
It also involves to differentiate into whatever functions are needed to accomplish certain
goals. Each functional worker usually reports to the functional heads, but do not normally
work directly under their supervision. Instead, the worker is controlled by the membership of
a certain project, and each functional worker usually works under the supervision of a project
manager. When work is accomplished, the project team may get dissolved, and workers from
different functional areas may get reassigned to other projects and tasks.
Performance appraisal:
Performance appraisal is the employee appraisal method which helps in the evaluation of the job
performance on the basis of the
Quality.
Quantity.
Cost.
Time.
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As presently in S-S Technologies there is no record of appraisals and usually appraisals are done by the
CEO so proper Human resource department will be required as number of individuals increased. That
human resource development will enable the following functions.
Will finalize yearly/quarterly targets.
Will ensure that every gets his right.
Ensure no reward for bad performers.
Avoid favoritism.
Improve open culture
S-S Technologies should use the 360-degree performance appraisal model to evaluate the performance of
their employees. To avoid the biasness in the performance appraisal process. 360 Degree Feedback allows
S-S Technologies to gather performance data and feedback from all members of your organization and
uncover company’s strengths and opportunities for improvement, while increasing employee involvement.
Compensation/Bonus Plan:
Compensation, base pay and bonuses were the most contentious issue of S-S Technology. S-S technology
was considered as Underpaying organization. The biggest challenges to S-S Technology were.
Pay for Performance
Bonuses and Shares for Higher Management:
Suitability.
If, the performance appraisal process evaluates honestly and without any biasness. So, the compensation
and rewards distribute honestly to deserving employees. The idea is that incentive will be giving on
individual/group performance. These kinds of pay system initiate performance culture in which extra
reward for unique contributions will be given and hence everyone knows that they will be rewarded for his
good work.
Company Policy:
Over the last three years, S-S Technologies had grown at an average of 33% per year where as Product
group average was 64% and ISG grown by 30%.
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Strengths of S-S Technology:
Low Cost Products
Technical Expertise
Flat Structure
Innovation
Low Overhead Resources
Self-Directive Approach
Flexible Work-Environment
Now expansion of company to double or triple from SST’s current size. The management knows that
they could not manage $50 million in revenue and 120 to 150 employees. So SST’s should change its
company policies and work with Matrix structure model, proper Human Recourse Department, Fair
distribution of Compensation/ bonus plans, Quick Decision Making, highly motivated employees, Team
players.
Partnering program:
Brock was anxious to develop a “partnering” system in which those crucial to the company’s success
could participate. He wanted to make people like Suttie, Schwarz and Ojala feel like owners or partners
committed to the company so they would not be lured away by the promise of greener pastures.