Evolution of DuPont's organizational structure

1. Successful single-player decision-making and its limitations Throughout the19th century, DuPont basically operated as a single-player decision-making, which was particularly evident in Henry's generation. 2. The initiative of group management is on the verge of crisis in the company, and no one dares to shoulder the heavy responsibility. When the family intends to sell the company to others, three cousins come out and try their best to buy 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. Multi-sector system fully adapts to the market. After careful analysis, DuPont put forward a series of organizational principles and established a multi-department organization. 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. "Tram" system Since the 1960s, another major change has taken place in DuPont's organizational structure, namely, the "Tram" organizational system has been established.