Case study

PureM Co. Ltd is a large company. The company has approximately 1000 employees. PureM Co. Ltd is using the Functional Structure to operate its internal operation as well as businesses. Gigie, Nancy, Johnny and Vincent are working in the same department, the Admin Department. Recently, four of them felt quite demotivated due to the following issues.

PureM Co. Ltd recently obtained a big project. As this is a big project, it requires all the department in the company to provide support for this project. Hence, the Chief Executive Officer (Kingston) decided that each department would need to allocate two people to support the project. Vincent was one of them. For the beginning, Vincent found it interesting to be able to work in a new team. After one month, Vincent feel stressed out because his immediate superior, Edward (Admin Manager) was having conflict with Mandy (Project Manager).

Edward and Mandy both having different opinion in terms of budget allocation. Edwards direction is to minimize cost but Mandy was having the opinion that more budget are needed to ensure the success of this big project. Vincent was torn in between, he did not know which instruction he should follow. Due to this, Vincent was really stressed.

Question

Identify the new structure change after PureM obtained the big project. Evaluate the positive and negative impact arise due to this new structure. By using the knowledge of Fundamentals of Management.