ERC INSTITUTE VIETNAM

Fundamental Management
Organizational structure & Syngenta Case Study Lectures: Andrew Sadler Students: Fred Nguyen Date: June 23, 2011

Organization Structure & Employee empowerment

Fred Nguyen

Table of Contents
1 Introduction ........................................................................................ 1 2 Hierarchical structure & Matrix structure .......................................... 1 2.1 Hierarchical organization structure .............................................. 1 . 2.2 Matrix organization structure ....................................................... 2 3 Syngenta’s employee empowerment
The narrow span of controls in a hierarchical structure also makes it less stress and complexity for managers to manage their subordinates. In addition, the structure also makes it easier for manager to understand, manage, and motive their subordinates (Ghuman 2010). 1

Organization Structure & Employee empowerment

Fred Nguyen

Besides the reduction of complexity, hierarchical organization structure also has several problems. One of the main issues is communication which Syngenta may have if adopt a more hierarchical structure for managing its projects. Because large number of hierarchy, it will take time for information to flow from top levels to low levels and from low levels to top levels. This leads to the delay in decision making and inability to response to emergency situations (Kumar 1997). Another issue is the competition. The promotion opportunities are clear therefore staffs may fight to get to higher level in company. This can produce good effect on performance of employee but it can also create negative effects (Kanter 1993). For example, the competition between sales people may lead to unable to share information because the afraid of being stolen customers. Many companies have failed in implementing Customer Relationships Management because of this issue (Baran, Galka & Strunk 2008).