A case study of management homework: organizational structure reform of DuPont company

1. Successful single-player decision-making and its limitations

In the whole19th century, DuPont was basically a person's decision-making operation, which was particularly obvious in Henry's generation.

2. The initiative of group operation.

Just as the company was on the verge of crisis, no one dared to shoulder the heavy responsibility. When the family was going to sell the company to others, three cousins came out to help the family and bought the company at a low price.

The most important feature of group operation is the establishment of "Executive Committee", which is subordinate to the board of directors of the highest decision-making body and is the highest management body of the company. When the board of directors is not in session, most of the powers are exercised by the executive committee, and the chairman concurrently serves as the chairman of the executive committee. At 19 18, there were 10 members of the Executive Committee, 6 department heads and 94 assistants, and most of the senior managers were over 40 years old.

The company abandoned the popular system in the United States at that time and established management methods such as forecasting, long-term planning, budget and resource allocation. On the basis of the division of management functions, functional departments such as manufacturing, sales, procurement, infrastructure investment and transportation have been established. Above these functional departments, it is a highly centralized office, which controls sales, procurement, manufacturing, personnel and other work.

3. Fully adapt to the diversified division of labor system of the market.

After careful analysis, DuPont put forward a series of principles for setting up the organization and created many branches.

Under the Executive Committee, in addition to setting up two headquarters headed by the vice chairman, we also set up branches according to various product categories, instead of adopting the usual functional institutions such as production, sales and procurement. In every department, there are functional departments such as accounting, supply, production, sales and transportation. Each branch is an independent accounting unit, and the branch manager can independently manage the procurement, production and sales of subordinate departments.

4. "Troika" system

After the 1960s, another major change has taken place in DuPont's organizational structure, namely the establishment of a "troika-style" organizational system.

Make changes according to the characteristics of China people.