The so-called organizational structure is the formal work arrangement within the organization. 19 At the end of the 20th century, large western enterprises generally adopted a vertically integrated functional structure, that is, a U-shaped structure. It is characterized by dividing enterprises into several departments according to their functions (such as production, sales, development, etc. ), and the independence of each department is very small, all of them are directly managed by the top leaders of the enterprise, that is, the enterprise implements centralized control and unified command.
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Since the 20th century, great changes have taken place in the external environment of western enterprises, such as the decline in the profit rate of the original market and the continuous emergence of new technological inventions. At the same time, the continuous expansion of enterprise scale has exposed the defects of this structure: senior leaders are trapped in daily production and business activities, lack of energy to consider long-term strategic development, administrative agencies are getting bigger and bigger, and coordination between departments is becoming more and more difficult, resulting in increased information and management costs. At the beginning of the 20th century, aiming at the defects of this structure, GM first reformed its internal organizational structure and adopted the M-shaped organizational structure. Since then, many large companies have followed suit
The basic feature of M-type organizational structure is the separation of strategic decision and business decision. In other words, according to the business, according to products, services, customers, regions and other semi-autonomous business departments are set up. Different departments and personnel are responsible for the company's strategic decision-making and business decision-making, so that senior leaders can be freed from the heavy daily business and concentrate on the long-term business decision-making of the enterprise, and supervise and coordinate the activities of each division and evaluate the performance of each department.
Baidu Encyclopedia-Enterprise Organizational Structure