Organizational structure adjustment in dynamic environment

Transformation and upgrading, forming an organization with rapid response ability and good adaptability to environmental changes. The typical feature of traditional functional organizations, that is, bureaucratic organizations, is that they assign people with similar jobs and skills to the same department according to precise arrangements but very rigid rules and practices. This theory holds that "division of labor brings efficiency". In the era of industrial economy, the relative consistency of the market and the advantages of economies of scale are in line with the strict bureaucratic organizational structure of enterprises, which meets the dual requirements of enterprises for order and efficiency. However, under the condition of knowledge economy, the challenges faced by modern enterprises not only come from efficiency, but also mainly from customer satisfaction. The diversification trend and dynamic environment of the market make the requirement for the rapid response ability of enterprises far exceed the requirement of following the principle of scale economy.

In this case, organizations need to respond to changes in the market and technology more quickly and flexibly. This requires enterprises to abandon the hierarchical system of bureaucratic organizations, release the vitality of enterprises, and carry out organizational system reform with the criterion of improving market response ability and efficiency. Horizontal network organization structure is more flexible than hierarchical structure. An organization with flexible structure resources can replace the specialization of business processing and tasks, and can also slow down the obsolescence, improve the rationality of decision-making and reduce the multi-interface existing in the traditional structure. Therefore, enterprises can make full use of modern information technology, especially network technology, to establish a flat, networked, virtualized, borderless, self-managed, project team and inverted pyramid-shaped organizational structure, thus transforming the internal operating mechanism of enterprises, reducing organizational operating costs, improving the efficiency of enterprise information management, and further enhancing the response ability of enterprises to market information and market strain.