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Chemical companies do business in many countries, have extensive product ranges and serve either multiple market segments or multiple applications. "Organisational design" is far more than creating a diagram of the management hierarchy in the company. It addresses the whole set of issues that commence with the debate of whether the company should be structured primarily on a geographic operating unit basis or a global business unit basis.
Chemical companies do business in many countries, have extensive product ranges and serve either multiple market segments or multiple applications. "Organisational design" is far more than creating a diagram of the management hierarchy in the company. It addresses the whole set of issues that commence with the debate of whether the company should be structured primarily on a geographic operating unit basis or a global business unit basis.
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Chemical companies do business in many countries, have extensive product ranges and serve either multiple market segments or multiple applications. "Organisational design" is far more than creating a diagram of the management hierarchy in the company. It addresses the whole set of issues that commence with the debate of whether the company should be structured primarily on a geographic operating unit basis or a global business unit basis.
Drepturi de autor:
Attribution Non-Commercial (BY-NC)
Formate disponibile
Descărcați ca DOC, PDF, TXT sau citiți online pe Scribd
Most chemical companies do business in many countries, have extensive
product ranges and
serve either multiple market segments or multiple applications. This complexity translates into one pivotal issue: how should the company be organised to best accommodate and balance all the demands upon it? “Organisational design” is far more than creating a diagram of the management hierarchy in the company (an ‘organogram’). It addresses the whole set of issues that commence with the debate of whether the company should be structured primarily on a geographic operating unit basis or a global business unit basis. In the vast majority of cases there is no clear-cut answer, and some form of matrix structure is required – which drives the necessity to address a number of complex questions - including: • Precisely which activities should be managed and controlled centrally and which regionally or nationally? • What should be the balance of power between the different management groups to ensure that all core activities are executive effectively? • How can the matrix structure be stabilised, so that ongoing internal squabbles between internal groups are eliminated and continuous power shifts (which are very disruptive) are minimised? “Organisational design” then means creating and installing structures, reporting lines, metrics, reward systems and processes (etc) to ensure that the company as a whole is set up in the best way to execute its chosen strategy and business model effectively. Our Services We assist chemicals and materials companies by: 1. Thoroughly reviewing the effectiveness of their current organisational structure and identifying areas for improvement 2. Defining and designing the optimum organisational structure, given the requirements of customers and the strategic positioning of company 3. Gaining internal acceptance and support for whatever changes will be involved in moving to this 4. Planning and implementing the necessary changes 5. Utilising all of the available levers and mechanisms to lock the changes in place The Basic Issue At the extremes, a company can adopt a completely decentralised structure (with a dominant geographic hierarchy – regional and national managers totally responsible for everything that happens in their territories) or a completely centralised structure (with dominant business unit managers, who are responsible globally for a particular part of the business). Both have very distinct advantages and disadvantages: Most companies recognise the trade-offs, so endeavour to find a mid-way solution. Unfortunately, even in sophisticated matrix organisations, almost every employee still works for either the central structure or geographic operations, and they inevitably try to gain more independence and/or power for themselves and their part of the organisation. In many companies, power vacillates between regions and the centre (the ”pendulum effect”), and with this a great deal of time and energy are taken up firstly in ‘internal politics’, and secondly in adjusting processes and reporting lines to reflect the shifting power split.