Computime, Limited: Chinas Boom Times Cause Growing Pains

Computime Ltd, a China-based family business, was forced to restructure and rationalize its chain of command due to rapid growth. By 2003, Computime had been able to leverage the low cost and manufacturing prowess of China-based businesses to become one of the world's largest Original Equipment Manufacturers (OEM). Yet, the company was facing growing pains, as its simple organizational structure began to run into coordination and control problems. This case outlines the obstacles and decisions facing the CEO, Bernard AuYang as he attempted to navigate the organization through this turbulent time. Bernard was hoping to keep the company on its growth trajectory and he was convinced that Computime's functional organization structure must be transformed into a multidivisional structure with decentralized business units. In this manner the institutional structure within the organization would be better aligned with the more rational institutional environment that the organization was facing. This case illustrates the obstacles which the CEO must overcome to make see his goals to fruition. Specifically, it emphasizes how he drew the restructuring plan and sought support from the cautious board members and other organization members who were resisting change. It also looks at issues of leadership and human resource management during organizational change.