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Introduction: Case Summary
The restructuring of the management model at Purple Cloud is the recommended strategy for Purple Cloud, considering the challenges of financial ineffectiveness, possible conflicts between and within departments, barriers to implementation, as well as overall inefficiency. The shift in an organizational structure is needed, indicating a change in the formal reporting lines, the grouping of personnel, as well as activity coordination. Therefore, the organization remains highly dependent on moral considerations in various realms of interactions, such as communication levels, the goals and objectives that the organization sets, policymaking and other procedural decisions, quality control measures, as well as cost-effective budgeting. Thus, because the main structural issue at Purple Cloud is concerned with the possibility of internal conflicts, limitations within functional unit communication, as well as the limited responsiveness to market needs.
Managerial Recommendations for Purple Cloud
The need for restructuring is reflected in the fact that globalization does not allow companies to lag behind their competitors. Instead, organizations are continuously challenged by the need to sustain long-term sustainability while also working on achieving a competitive advantage that is favorable to the objectives that the company has set (Herden, 2020). Such a process is enabled by the development of alliances, such are mergers and acquisitions, which bridge existing gaps in technology, financial, and administrative resources, acquiring expertise and relevant knowledge, as well as enhancing the process of market repositioning. Because of this, it is required to have a cohesive organizational structure that would be aligned to the strategy of implementation as related to the development, use, and amalgamation of the structure as supported by appropriate control of systems. Besides, a proper organizational structure is necessary to boost the performance of the business by means of allocating value-driven tasks as well as role placement correlation intended for quality and efficiency improvement while also working on being customer-oriented and competitive in its designated market.
In its essence, the managerial transformation at Purple Cloud must consist of setting up supportive organizational control systems, thus allowing to achieve the desired targets by means of promoting management incentives to workers, facilitating investment in the provision of feedback, as well as quality organizational performance. A cohesive organizational structure is being supported by a healthy culture and positive attitudes within it, alongside with shared values and beliefs that all members of the company have (Mbau & Gilson, 2018). Because of this, it is imperative that the management of Purple Cloud invest time into the performance of appropriate diligence, the setting of realistic targets, reducing the possibility of culture-related conflicts between workers, and focusing attention on the process of integrating the varied perspectives into the managerial decisions (Sarala, Vaara, & Junni, 2019). Thus, a sound and effective organizational structure represents a catalyst to the control and coordination necessary for the company to achieve its goals. It is imperative that Purple Cloud works on translating its vision into a course of actions that are based on critical analysis, the interactions of interpersonal skills, as well as entrepreneurial judgment.
Another viable option is concerned with the abandonment of a divisional structure, which entails the grouping of each organizational function into a separate division that may correspond to either products or geographic locations. Each division includes all the needed resources and tasks in order to support the objectives set for each of them. Such a structure enables the development of several small-function units to facilitate quick and highly efficient responsiveness to key issues that occur during implementation. Because the company works on continuously updating and creating new customer-oriented products, the divisional structure allows to reduce product development cycles and increase the market focus in the core areas that are being emphasized (Mosca, Gianecchini, & Campagnolo, 2021). However, such an environment is costly in the long run and creates challenges in business coordination.
As a replacement to a divisional structure, Purple Cloud should consider establishing a matrix organizational structure, which is often used by organizations for the purpose of distributing resources and employees across a range of operations (San Cristóbal & Diaz, 2018). The structure entails a format in which workers report to a more significant number of managers instead of one who oversees every aspect of a project. Such a structure is advantageous for several reasons. The company is expected to benefit from it because of the increased communication efficiency that enables several departments to communicate and collaborate on a project. In addition, the company can benefit from the improved employee motivation and increased teamwork as the matrix organizational structure enables greater autonomy and the exchange of ideas. In contrast to the traditional organizational structures, the recommended solution of a matrix structure does not have a hierarchical system of reporting and will offer an organization increased flexibility and opportunities to make well-informed decisions due to the increased command lines.
When it comes to the alignment of the mission and vision of the organization to the recommended options, the statements must act as a blueprint for effective performance, providing a valuable return to shareholders (Alegre et al., 2018). Besides, both vision and mission statements are expected to instill a sense of inspiration in employees, a sense of altruism due to helping customers meet their goals. The vision is also necessary to provide a strong sense of direction and improve goal identification by translating plans into action. Due to the dedication to teamwork as one of the values, Purple Cloud’s restructuration can facilitate an increased collaboration and alignment with long-term goals.
Conclusion
To conclude, changes in organizational structure and a managerial transformation were recommended based on the rationale of the need to improve Purple Cloud’s financial performance through changing the way in which the company manages its operations. As a result, it is expected that the organization will see a decrease in conflicts within and between departments, prevent abrupt changes in management, as well as address the lack of adherence to the company’s purposes. In addition, it is important that Purple Cloud promotes the achievement of organizational goals by changing its mission and vision statements. As of now, the “safe movement in the cloud for all applications” is a vision that does not communicate the long-term desires of the company within the customer-centric approach to business. It is recommended to include a message regarding the creation of opportunities to cover customers with the safest cloud applications, thus making sure that clients are the sole focus of the company’s operations. The values of the organization can be embedded into its mission statement, therefore stating that the organization does not only provide quality protection products but is dedicated to efficiency, honesty, and teamwork when doing so.
References
Alegre, I., Berbegal-Mirabent, J., Guerrero, A., & Mas-Machuca, M. (2018). The real mission of the mission statement: A systematic review of the literature. Journal of Management & Organization, 24(4), 456-473.
Herden, T. (2020). Explaining the competitive advantage generated from analytics with the knowledge-based view: The example of logistics and supply chain management. Business Research, 13, 163-214.
Mbau, R., & Gilson, L. (2018). Influence of organisational culture on the implementation of health sector reforms in low- and middle-income countries: a qualitative interpretive review. Global Health Action, 11(1).
Mosca, L., Gianecchini, M., & Campagnolo, D. (2021). Organizational life cycle models: A design perspective. Journal of Organizational Design, 10, 3-18.
San Cristóbal, J. R. & Diaz, F. E. (2018). An analysis of the main project organizational structures: Advantages, disadvantages, and factors affecting their selection. Procedia Computer Science, 138, 791-798.
Sarala, R. M., Vaara, E., & Junni, P. (2019). Beyond merger syndrome and cultural differences: New avenues for research on the “human side” of global mergers and acquisitions (M&As). Journal of World Business, 54(4), 307-321.
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