Form groups of three to five people and discuss the following scenario: You are the founding entrepreneurs of Zylon Corporation, a fast-growing Internet software company that specializes in electronic banking. Customer demand to license your software has boomed so much that in just two years you have added over 50 new software programmers to help develop a new range of software products. The growth of your com- pany has been so swift that you still operate informally with a loose and flexible arrange- ment of roles, and programmers are encouraged to find solutions to problems as they go along. Although this structure has worked well, signs indicate that problems are arising. There have been increasing complaints from employees that good performance is not being recognized in the organization and that they do not feel equitably treated. Moreover, there have been complaints about getting managers to listen to their new ideas and to act on them. A bad atmosphere seems to be developing in the company, and recently several talented employees left. You are meeting to discuss these problems.

1. Examine your organizational structure to see what might be causing these problems.

2. What kinds of design choices do you need to make to solve them?