I-core Soft Ltd. has had a very humble beginning, starting as a co-operative project development with Rob and Paul, both software engineers, working overtime to meet project deadlines. As more local and regional businesses started stepping into online marketing or advertising, I-core Soft Ltd. saw steady growth in terms of projects. Rob and Paul hired more engineers to assist them with software development, and, started paying attention to obtaining more customers themselves. The organizational structure was kept to the basics, with the junior engineers divided into teams of 6-7 members. These teams were lead by a Senior Engineer each, who reported directly to either Rob or Paul. This was largely a semi-formal reporting system and was highly useful in early days when there were few people on board and the projects were simple and far between. With the development of highly complex web-development technology and increasing requirement of specialization for each new project, the earlier organization design and structure was not found to be appropriate. Rob and Paul found they were too busy with big clients and were unable to give as much time to the daily affairs of the company. The internal reporting system, which at one time had Rob having 32 direct reports and Paul, 39, was not proving effective or beneficial for anybody. Another problem that I-core Soft Ltd. was facing was high turnover in terms of qualified Engineers leaving the company. The cause that was mainly realized for the above was that the employees didn’t see themselves growing within the company. Though they found themselves continuously working on interesting projects, and they were given good pay packages and incentives – but within a year or two, they became restless. This was large because I-core Soft Ltd. was seen as a tightly controlled organization, with almost all the managerial jobs concentrated withPaul and Rob.