Organization theory & structure DEC 2025

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Organisational Theory, Structure and Design

Dec 2025 Examination

 

 

Q1. Tech Nova Innovations is expanding its units to 5 new countries in the next two years. The MD of the company realized that there is slow decision-making and poor communication between the headquarters and subsidiaries, thus reducing the performance. Currently, the company has a very centralised decision making structure. For every small decisions, subsidiaries need the head office’s approval. The Board is thinking of redesigning the existing structure to enhance performance and clear communication. In this context, evaluate the ways in which this redesigning must happen to handle slow decision making and improper communication. (10 Marks)

Ans 1.

Introduction

As organizations expand globally, effective structure and communication systems become vital to sustaining competitiveness and operational efficiency. Tech Nova Innovations, a fast-growing multinational firm, is currently experiencing performance delays due to excessive centralization—where even minor decisions require headquarters’ approval. This overreliance on a top-down structure has resulted in bureaucratic bottlenecks, poor responsiveness, and low subsidiary autonomy. In preparation for expansion into five new countries, the company must redesign its organizational structure to ensure faster decision-making, decentralized authority, and better communication flow between the headquarters and subsidiaries. A well-

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Q2. Gem Star Jewellery has rapidly grown from 30 to 300 employees in three years. The top management has created a line and staff organisational structure in which employees have clear job roles, strict hierarchies, and formalized channels of communication. This system has improved control, however, some employees feel the work culture is too rigid. The top management wants to introduce more flexiblity in the organisation structure. Analyze the utility of following such a formalised line and staff organisational structure in this case. Discuss the ways in which the organisation structure can be improved to support this quick growth. (10 Marks)

Ans 2.

Introduction

As companies evolve from start-ups to medium-sized enterprises, their organizational structure must adapt to balance control with flexibility. Gem Star Jewellery, having expanded from 30 to 300 employees in just three years, has adopted a line and staff organizational structure to ensure efficiency, clarity, and authority distribution. While this structure strengthens supervision and control, it has also introduced rigidity and reduced employee autonomy

 

Q3(A). BioFlora Organics has a matrix organisational structure in which employees are reporting to both project and functional managers in different locations based on their projects.The leadership team plans to improve communication without sacrificing the matrix organisation structure. As their HR Consultant, redesigning this existing framework of organisation culture. (5 Marks)

Ans 3a.

Introduction

BioFlora Organics operates through a matrix organizational structure, where employees report to both project and functional managers. While this structure promotes flexibility and knowledge sharing, it often leads to communication breakdowns, power conflicts, and confusion regarding accountability. To preserve the benefits of matrix management—such as resource efficiency and innovation—while addressing its communication challenges, the HR consultant must redesign the organisational culture to foster collaboration, clarity, and trust across dual

 

Q3(B). Life Sage Hospitals is facing employee resistance against digital transition to new health solutions. The top management has decided to redesign the existing organisational structure in order to improve innovation. Recommend a brand new organisation structure for this hospital network to help them overcome resistance to change because of strong informal groups.

Ans 3b.

Introduction

Life Sage Hospitals is experiencing strong employee resistance to digital transformation due to entrenched informal groups and rigid hierarchies. The existing structure likely promotes departmental silos and limited knowledge flow, making innovation difficult. To overcome resistance and enhance agility, the hospital network requires a new organisational structure that integrates digital solutions, empowers cross-functional collaboration, and