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Case: Organising at Stellar Electronics

Stellar Electronics, a fast-growing tech company, decided to reorganize its operations to improve efficiency and innovation. The management focused on defining an organizational structure and implementing effective delegation practices.

The company adopted a functional organizational structure, dividing departments into R&D, production, marketing, sales, and customer service. Each department had specialized teams led by managers responsible for achieving departmental goals.

A clear hierarchy was established, ensuring communication flowed efficiently between levels. Each employee knew their reporting authority, reducing confusion and overlapping roles.

The CEO delegated decision-making authority to departmental heads, empowering them to make quick decisions. Tasks were delegated based on employee expertise, which increased accountability and motivation.

Weekly inter-departmental meetings ensured that different departments worked in harmony to achieve the company's objectives.

The reorganization led to improved productivity, faster decision-making, and better employee satisfaction. The company launched its flagship product six months ahead of schedule and gained a competitive edge in the market.

Stellar Electronics demonstrated how a well-defined organizational structure and effective delegation contribute to achieving business goals.

Who received decision-making authority in the new structure?

Solution

✅ Correct Option: 3

Option 1 -> All employees receiving decision-making authority would create an impractical and inefficient structure with no clear accountability.

Option 2 -> External consultants are temporary advisors who provide recommendations but typically do not hold ongoing decision-making authority within organizational structures.

Option 3 -> Departmental heads are positioned to make informed decisions within their areas of expertise and can effectively manage their teams with appropriate authority.

Option 4 -> The board of directors focuses on strategic oversight and governance rather than day-to-day operational decision-making within departments.


Hence, Option 3: Departmental heads -> In the new structure, departmental heads received decision-making authority as they are best positioned to make operational decisions within their specific domains, enabling faster responses and better accountability while maintaining organizational efficiency -> correct

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