Bostil has implemented a vertical structure in order to operate its business. Its operations are categorized based on geographical locations which are coordinated through a specific integration of cross-functional mechanism. The President of the company is the highest authority after the Chief Executive Officer (CEO). The power of decision making is centralized as per the cutlrue of the company because the top-level management did not allow the managers of other geographical locations to make contributions in the decisions. Only senior managers of different departments are the authority to make their contribution in the decision-making process. A vertical job specialization has been implemented by the company to effectively achieve micro-level specialization in which the level authority is associated with a particular position (Bridgman, 2012).
In this structure, Bostil promotes job enrichment and the top level management delegates the power to middle or small level management. The company has adopted Cross-functional mechanism approach for macro level coordination mechanisms between different organizational units because the decisions of the company are taken by the President, the CEO and the Strategic Committee which include managers from main departments such as HRM, Finance, Purchasing, Sales and ICT (Tsai, Hsu and Fang, 2012). Due to these features, the company is facing negative consequences as it is not able to adapt as per market change. The policies implemented by the corporation did not promote or foster an innovative approach which is crucial to address emerging market challenges.
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