Choose an organization and describe its current organizational structure. How wo
ID: 355357 • Letter: C
Question
Choose an organization and describe its current organizational structure. How would that structure have to change in order to facilitate customer management and to make sure people are evaluated, measured, and compensated for building the value of the customer base? Choose an organization and describe its current organizational structure. How would that structure have to change in order to facilitate customer management and to make sure people are evaluated, measured, and compensated for building the value of the customer base?Explanation / Answer
An example of a company is Zuari Agro Chemicals Limited, which is a fertilizer company in India.
The organization structure is shown below:
Managing Director
|
VP – Finance | President – HR | President – Agri Business
| |
GM F&A GM – HR & IR GM - Marketing
GM – Treasury GM – Commercial
The various General Managers (GM) have functional managers reporting to them. The organization is old fashioned and hierarchy driven wherein decisions are taken at a higher level and implementation is done by the line managers and the functional managers.
In order for better customer centricity, the lower level managers who interact with the customer’s needs to be empowered and be encouraged to take decisions on their feet which improves customer experience such as being able to decide on additional services, new product offering, newer consultation experiences etc. As of now such decisions are only taken at the apex level.
Such a decentralised decision making will enable higher efficiency and faster responsiveness by the organization as a whole. Also the managerial efficiency should be assessed on their ability to delight customers and customer centeredness rather than just their ability to execute decisions. Necessary changes in the performance appraisal method needs to be undertaken to measure customer focus, no. of innovative solutions provided to customers and impact on existing and new customers. This will enable a greater focus on customer delight by the entire organization.