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Using the attached course materials and 2023 sources, respond to the discussion post below. (Eagle Aviation Industries is NOT a real company. It is a make-believe start up company used throughout this course for discussion purposes)
—Hello fellow EAI Board Members,
Eagle Aviation Industries (EAI) has reached a milestone in its existence. Over 600 employees, the creation of a new partnership with Toyota and making a profit! Some would think it’s time to sit back and enjoy the hard work, but if we plan to continue our success, we will need to outsmart and stay ahead of the competition. The first question for this meeting evolves around whether to decentralize control or should we have a hierarchical type of control?
I would like to pose this question first. How can we stay competitive in a market that is changing at a fast pace? Second, I’ll explain the advantages and disadvantages between a decentralized span of control versus that of hierarchical control and see which you think fits best for EAI to remain competitive and make the necessary adjustments.
According to Schwartz (2021), a traditional hierarchal organization funnels decisions from the top down to the bottom of the structure which takes time and several layers of coordination. This process typically forms a silo that controls the path and power of information. In addition, silos keep departments separate and stifles employee creativity. A hierarchical approach does work well in a predictable and stable environment. EAI’s market is not predictable or stable at this this time. Freedman (2023) outlines several disadvantages to a hierarchical structure which includes dealing with bureaucracy, competing needs of departments, and does not allow employees the ability to take responsibility for their tasks. Although advantages exist for a hierarchical structure, with the continual advancements in electrical aviation technology, EAI will need a structure that can foster creativity and can make decisions quickly.
A decentralized (flat) structure will allow EAI to imbue creativity among our employees and allow for quick decision making at the necessary levels to stay competitive in the market. Advantages to a flat structure according to Freedman (2023) will promote responsibility and ownness from the employees, increase communication, which can lead to better collaboration between teams, and create opportunities for creating or changing process quickly. Disadvantages of a flat structure include less supervision, confusion, can get unmanageable as the organization grows, and employees may not have the appropriate skills (Freedman, 2023).
The second question for today’s meeting, how can EAI incorporate data analytics into proposed organizational changes from our first question today? EAI can leverage data analytics to keep all stakeholders, such as partners, leadership, and employees informed of market, customer, industry, and relevant EAI information at the correct time to make quick decisions. It is recommended to install a chief, informational officer to create strategies to leverage data EAI can use to further efforts to remain competitive (Piontek, 2022).
Freedman, M. (2023, January 23). Types of Organizational Structures to Consider for Your Business. Business News Daily. Retrieved February 8, 2023, from https://www.businessnewsdaily.com/15798-types-of-organizational-structures.html
Piontek, D. (2022, March 14). Agile Data Product Management. EY. Retrieved February 8, 2023, from https://www.ey.com/en_us/consulting/how-agile-product-management-makes-companies-data-driven-organiz?WT.mc_id=10653644&AA.tsrc=paidsearch&msclkid=78790c8efa2e1188db516f6ac8b7781a
Schwartz, J. (2021). Work Disrupted: Opportunity, resilience, and growth in the accelerated future of work. John Wiley & Sons, Incorporated.
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