A company manufacturing sewing machines set up in 1946 follows formal organisation structure. It is facing lot of problems such as delays in decision-making. As a result, it is not able to adapt to the chaning business environment. The work force is also not motivated. There is a problem of red tapism and employees turnover is very high.
You advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you. In which sector can the company diversify keeping in mind the declining market for the product the company is manufacturing.

Explanation

My advice to the company is to give due importance to informal organisational structure along with formal. They should allow informal structure also to develop. This will help company to overcome the problems of delay in decisions, lack of motivation, etc. As information travel very fast in informal organisational structure.
The company may get following benefits with informal organisational structure.
Company can diversify its activities by introducing embroidery machines, it can also design special machines keeping in mind the requirement of ready-made garment manufactures. etc. By diversifying in the same field it can get maximum utilisation of existing resources only.