Restructuring Organization for Organization Development

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Restructuring Organization for Organization Development

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Restructuring:

Restructuring Dr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor Al-Qurmoshi Institute of Business Management, Hyderabad - 500005

Restructuring:

Restructuring Organizational Structure consists of activities such as, task allocation, coordination and supervision, which are directed towards the achievement of organizational goals. Structural design include moving from functional, self-contained-unit and matrix structures, to process-based and network-based structures.

Purpose of Restructuring :

Purpose of Restructuring Increasing global competition and rapid technological and environmental changes are forcing organizations to restructure themselves from rigid bureaucracies to leaner more flexible structures. These new forms of organizing are highly adaptive and cost efficient. They often result in fewer managers and employees and streamlined work flows that break down functional barriers.

Causes of Organizational Restructuring:

Causes of Organizational Restructuring Rearranging business structure to follow a new business model. Creating new divisions to facilitate new products or product lines. Trimming production staff due to surplus production Increasing sales staff to drive sales.

Functional Organization:

Functional Organization Basing the structure on different functions, such as, marketing, finance, human resources and Internet Technology; Each have their own department and each department focuses exclusively on that function.

Functional Organization:

Functional Organization

Divisional Organization:

Divisional Organization Divisional Organization are mini-companies built around particular products or regions. Each division contains all the functions necessary to handle business for that region or product line.

Divisional Organization:

Divisional Organization

Matrix Organization:

Matrix Organization The matrix structure is overlaid on top of a company's functional structure to tackle projects that involve multiple departments. Project managers utilise staff for their teams from different departments so that all the necessary functions work on it together. Team members have to answer to both the project manager and their department supervisor.

Matrix Organization:

Matrix Organization

Process Based Structure:

Process Based Structure The process based structure divides up the organization around processes, such as research, manufacturing and sales. A process-based organization considers how the different processes relate to each other and the customer.

Process-Based Structure:

Process-Based Structure

Network Organization:

Network Organization A group of legally independent companies or subsidiary business units that use various methods of coordinating and controlling their interaction in order to appear like a larger entity .

Network Organization:

Network Organization Designer Organizations Supplier Organizations Broker Organization Producer Organizations Distributor Organizations

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