Advantages

Informal and fluid Close interaction between focussed, committed and hardworking employees Responsive to consumers needs Things got done cheaply

Disadvantages
Employees working on more projects as company grew Increased workload No accountability No reporting structure Reduced quality of customer service Redundancy in operations different employees doing same work No financial planning
Fire fighting mentality

WHY THE TRANSITION?

Sharply declining productivity Decision regarding payment of employees No clarity about who should attend which meetings in the initial structure Accountability required

FEATURES:
Aimed at creating information flow while maintaining the informal structure Inner circle had the senior managers Outer circle had the functional managers and their employees Customers formed the outer environment

ADVANTAGES:
Free flow of information Continuous flow of information Non hierarchical as the previous structure Responsive

DISADVANTAGES:
Employees could not relate New hires confused about delegation of power and their performance evaluation Did not answer any questions or achieve anything Only responsive did not provide for planning