This document summarizes and analyzes the current management structure of SCILplc, a company formed by the merger of Bi-Flo and Air-Flo. It finds that the current structure retains too much separation between the two original companies, creating duplication and multiple layers of management. It recommends consolidating roles and simplifying the structure to a flatter, horizontal model with six executive roles overseeing specialized divisions. This new structure aligns with SCILplc's objectives of sales growth, profit increases, better product availability and innovation through clearer communication and responsibility across the merged company.

1. CILT UK Professional Diploma in Logistics & Transport
Supply Chain Management Module
Core Management
Task 1
Prepared for Samantha Mars

2. NZ Student: Helen McGinty
Module: Core Management
Task: 1
October 2014
Page 2
Introduction
A clearly defined and logical management structure is paramount for a business
to operate effectively. Designing a management team which is simple but
effective will help with improved communication and an understanding of
responsibilities within a business. The more complex an organizational structure
is; the more likely it is that communication lines will be blurred.
A management structure should be aligned or based around the company’s
objectives or key focus areas and should include a cohesive leadership team.
Some of the indications of an ineffective structure are:
 A lack of coordination
 Conflict
 Unclear roles and responsibilities
 Underutilized skills and/or resources
 Poor work flows
 Reduced responsiveness
 Conflicting communications
 Low staff morale
This report will look at SCILplc’s current management structure, identify the
issues and offer recommendations for a new and improved organizational
structure to ensure SCILplc reaches its company objectives.
Although the restructure will involve change within the business which may not
be easily accepted by all staff, the merging of the two companies creates an
opportunity to improve the overall business which will benefit all employees. It will
also offer promotion and personal development for some individuals.

3. NZ Student: Helen McGinty
Module: Core Management
Task: 1
October 2014
Page 3
Current Structure
Here is the current merged structure for SCILplc:
 The initial observation of this structure is the remaining separation of the
two companies Bi-Flo and Air-Flo. Although they have been merged
together to form SCILplc, both structures remain somewhat separate and
have been laid adjacent.
 This has created a large amount of position duplication and created a very
‘top heavy’ management structure. This multi-layered management
structure will be costly to the business and will be contributing towards slow
response times due to added layers of approval.

4. NZ Student: Helen McGinty
Module: Core Management
Task: 1
October 2014
Page 4
Company Objectives
 SCILplc has two main objectives, to increase sales by 15% per year for the
next three years and increase profit by 20% per year. This should be
represented in the company’s structural design by having a strong
marketing team to build customer relationships and generate new business.
 Another goal for SCILplc is to improve product availability which should also
increase customer satisfaction. This means a greater focus on supply chain
management within the business.
 The company has also recognized that they must also become more
innovative in product development and take advantage of new age
technology.
Recommendations
 My initial recommendation for the new SCILplc structure is that it grows
horizontally rather than vertically. This ensures that the company is viewed
as a partnership rather than a hierarchical organization and encourages
‘team spirit’ amongst employees. The new structure will ensure
communication lines are stable by simplifying the management team.
 The Chairman, Chief Executive and Chief Learning Officer will remain
unchanged within the new structure. The Chief Learning Officer will now
report directly to the Head of Human Resources.
 The two current roles of Managing Director for Bi-Flo and Air-Flo will be
merged into one role to ensure the business operates under the new
merger and the two pre-existing companies are not separated.
 The executive management team will be condensed down into six new
roles Head of Finance, Head of Production, Head of Sales & Marketing,
Head of Supply Chain, Head of Information Technology and Head of
Human Resources. They will all report to the Managing Director.
 The level three management team will consist of seven roles. Four Factory
Managers at each manufacturing site C5, C8, C2 and C25 and three
Distribution Centre Managers at each distribution site C24, C25 and C12.
The Factory Managers will report to the Head of Production and the
Distribution Managers will report to the Head of Supply Chain.

5. NZ Student: Helen McGinty
Module: Core Management
Task: 1
October 2014
Page 5
 Below are each of the new divisions and their areas of responsibility:
o Finance – Accounting, budgets and financial planning.
o Production – Manufacturing, quality, cycle times, maintenance and
repair and raw materials purchasing.
o Sales & Marketing – Design and development, marketing, expos and
promotions, customer orders and customer satisfaction.
o Supply Chain – Transport, distribution, warehousing, stock control,
inventory and procurement of suppliers.
o Information Technology – Information and systems management,
report management and technology support.
o Human Resources – Health and safety, recruitment, training and
development, succession planning, policies, pay roll and supporting
change within the business.
Please see the second attachment for the recommended management structure
for SCLplc.