Why the company should be adjusted to the organizational structure

Organizational architecture refers to the structure of an organization as a whole, which is the basic element of organizing resources, building processes, conducting business and implementing management within the enterprise under the influence of multiple factors such as enterprise management requirements, control positioning, management mode and business characteristics.

Reasonable organizational structure will activate the entire organization, fully mobilize the enthusiasm of everyone, greatly enhance the overall performance of the organization, will promote enterprise development. On the contrary, if the organizational structure is unreasonable, it leads to organizational inefficiency and low employee morale, which seriously affects the development of the enterprise.

Through my past work experience and consulting companies, I have witnessed the adjustment of too many companies' organizational structure, most of which will sort out and adjust their organizational structure every year, and some even adjust it once every half a year, which makes me feel y about the adjustment of the organizational structure of the company, and I have carried out some thinking to analyze why it is necessary to adjust the organizational structure?

1. Adjustment of the company's strategy

Corporate strategy determines the organizational structure of the enterprise, the organizational structure needs to be matched with the strategy, corporate strategy, once a major change, the need for organizational structure to support the realization of the adjustment. Need to re-arrange to match the new strategy implementation, otherwise, the original organizational structure of the "inertia" will continue to push the enterprise on the old road, the strategy will be reduced to a slogan.

2. Cross-departmental collaboration is weak

Some companies have a strong ability to fight in individual departments, but each one does its own thing, sweeping the snow in front of its own door, and even building an invisible wall, cross-departmental synergy is very poor, resulting in inefficiency, which is a sign that the organizational structure needs to be adjusted.

3. Departmental positioning fuzzy

Departments shirking their responsibilities to each other, tugging at each other, some of the work and even do not know which department to find a solution to the confusion, which is typical of the departmental function of the positioning and division of labor is unclear, the departmental job responsibilities are not standardized and scientific, the urgent need to change.

4. The boss has become a bottleneck in the development

With the development of the company, many bosses will introduce professional managers, due to the authorization of its afraid, resulting in the middle cadres are virtually non-existent, but a lot of things still have to do their own hands, and in some cases, even more tired than before, the company, no matter what the big things and small things or their own final decision, resulting in the company's communication and communication, and the company's communication and communication, and the company's communication, and the company's communication, and the company's communication, and the company's communication. The company's communication and decision-making efficiency can be imagined as a result of this.

5. The need for corporate profits

When the company's profits plummeted or even lost money, it had to control costs and implement measures to reduce staffing and increase efficiency, which involved adjusting the organizational structure to save the company's situation.

6.Business model or product has been clear, the need to scale

Before the product is accepted by the market, the organizational structure is not a problem. But once your product is validated and accepted by the market, you have to redesign the organizational structure for the next phase of growth.

7. Stages of Growth

In the early stages of a company's growth, there may be a certain degree of internal chaos and disorganization, which is harmless, and even necessary for proper disorganization. However, as the enterprise develops, the complexity within the enterprise begins to grow, and this chaos soon becomes an obstacle to the development of the enterprise, which necessitates organizational restructuring.

8. Changes in the external market

The business remains the same, but the environment in which the business is developing changes, such as increased competition, global expansion, or the emergence of new sales channels, which can cause the organization to adapt to the changed external environment. This is essentially a reaction to market developments and competition.

9. Acquisition and merger

Enterprise acquisition or merger, the original ecology is broken, will inevitably be faced with organizational restructuring. For example, in the early 1990s the emergence of state-owned enterprises were acquired by the private sector, in the process of restructuring, the acquired enterprise organizational structure can not adapt to the new market environment, in order to better develop the enterprise, it is necessary to reorganize, will inevitably face a new organizational structure adjustment.

In addition, in recent years, due to changes in the economic environment, the real economy is very difficult, many private enterprises in order to survive, had to find a big tree to ride the cool, to accept the acquisition of large state-owned enterprises or merger requirements, which is from the private sector into state-owned enterprises, the governance structure has also changed into the set of state-owned enterprises, that is, the organization involved in the restructuring of the structure.

10. Changes in corporate governance

Some companies are developing very rapidly, with business across the country and even globally, and have opened a number of institutions or molecular companies around the world, and the original governance model has been backward, in order to control the business and operational risks, the group must be based on the purpose of the group's control to design the organizational structure to ensure that The company's rapid and healthy development, to avoid major risks;

On the contrary, some group companies in the process of development, blind expansion, let it develop, ignoring the group control, resulting in molecular institutions have major problems, resulting in dragging the group or even bankruptcy, the most typical is the Zhengzhou Asia Asia from the altar of the bankruptcy of the downfall of the management out of control, resulting in the sub-institution of barbaric development, the emergence of major problems.

11. The emergence of systemic risk

Every time a systemic risk emerges, the enterprise will face the adjustment of organizational structure to adapt to the current situation in order to survive.

For example, in 2008, the U.S. subprime mortgage crisis triggered a major global crisis, resulting in China's foreign exports were seriously hampered, many foreign trade enterprises had to export to domestic sales, began to pay attention to the domestic market, the layout of the domestic sales channels and construction;

In addition, the outbreak of the global New Crown epidemic at the beginning of 2020, especially in China, spreading quickly, the implementation of stringent measures of sealing the city. Resulting in a lot of Chinese enterprises offline channel blocked, suddenly online channel fire, directly to the live bandwagon on the wind many traditional enterprises began to pay attention to the online channel, not only increase investment, in addition to a lot of Netflix bandwagon, a lot of business bosses are also directly up to the foreground bandwagon.

In short, the organizational structure is like the skeleton of the enterprise, directly affecting all aspects of the enterprise, only the organizational structure of the enterprise and the enterprise situation match, the enterprise will be in the strategy, culture, recruitment, performance and incentives and other matters to produce a sustained impact, to ensure that the smooth realization of the enterprise's organizational goals, to promote the development of enterprises.