Organizational structure reform should solve the following four structures: functional structure. The successful operation of an enterprise requires multiple functional departments to work together. Therefore, when designing the organizational structure, we must first determine which functions are needed for enterprise management, and then determine the proportion and relationship between the functions. Hierarchical structure, that is, the composition of each management level, that is, the organization needs to set several management levels vertically.
Department structure, that is, the composition of each management department, that is, how many departments the organization needs to set horizontally. Authority structure, that is, the division of powers and responsibilities at all levels and departments and their relations.
2. In order to survive and develop, enterprises must constantly adapt to the changes in the environment and meet various requirements put forward by the environment.
Therefore, the environment is the key factor to decide what kind of organizational structure managers adopt. The external environment refers to the industry characteristics, market characteristics, economic situation, government relations, natural environment and so on.
Environmental factors can affect the design of organizational structure from two aspects, namely, environmental complexity and environmental stability. The external environment will affect the functional structure, hierarchical structure, departmental structure and power structure of the organization.
The more complex and changeable the environment, the more emphasis should be placed on adaptability and non-programmed decision-making ability in organizational design. This is why in this case, small-scale enterprises with simple structure have stronger adaptability than large enterprises.
Organizations in a highly destructive environment need to reduce management levels, strengthen inter-departmental coordination and departmental authorization, and weaken internal control. It is necessary to maintain certain flexibility and elasticity in the structure, so as to make the enterprise more adaptable. When the economic environment is relatively stable, enterprises pursue cost-effectiveness, often with large scale and complex organizational structure.
In a stable environment, the mechanistic organizational framework can be adopted, and the rules, procedures and power levels within the organization are obvious, and the degree of centralization of the organization is obviously enhanced.
3. The organizational structure of an enterprise is the main tool to realize its business strategy, and different strategies need different structures. Once the strategy is formed, the organizational structure should be adjusted accordingly to meet the requirements of strategy implementation.
Chandler, a famous management scholar, pointed out that strategy determines structure.
Different strategic choices will affect the organizational structure at two levels:
Different strategies need different business activities, which will affect the functional structure of management;
The change of strategic focus will lead to the change of work focus of the organization and the change of the importance of various departments in the organization, so it is required to adjust the relationship between management departments accordingly.
The diversification strategy of an enterprise means that the business content of the enterprise involves many businesses, and a highly diversified strategy requires a more flexible organizational structure. This requires a decentralized organizational structure, which is relatively loose and has more asynchrony and flexibility. Under this organizational structure, there are relatively few links between diversified businesses, and the core processes can be managed in parallel.
Only in this way can we promote the implementation of diversification strategy as a whole, such as the division system. When implementing a single business strategy or a low-cost strategy, it requires the organizational structure to reduce operating costs and improve overall operating efficiency. At this time, enterprises can choose a more centralized organizational structure, such as linear functional system, which is usually more mechanical.