Organizational Design Optimization Of PLPC Realty Service Company

As an important role of guaranteeing production, serving staff's living and stabilizing the community, realty management is one of the critical businesses in Minefield Service Department (MSD) of PetroChina Lanzhou Petrochemical Company (PLPC). Once PLPC MSD governed two realty management companies, one from former Lanzhou Refinery Plant and the other from former Lanzhou Petrochemical Industry Corporation. They varied significantly in corporate culture origin, foundation background and operational circumstance, which resulted in differed organizational structures. In 2006, when PLPC MSD was founded, one object set for realty management was "Coordination in the First Year and Good Performance in the Second". In Nov. 2009, MSD merged the two into a new Realty Service Company (RSC) by just a simple organ combination, which led to a huge top administration in it, overstructured, overstaffed and ineffective. What is more, each grass root ran in its own way as before, causing complication and difficulty in management. Owner's complain flooded. An optimized organizational design is, therefore, necessary and inevitable.In this paper, the author analyzed the status quo and issues of RSC's organizational structure, using enterprise organizational management theories like organizational structure mode, organizational design principle and organizational development trend, and focusing on the practice of RSC. In his viewpoint,1) Present RSC is a line and staff organization, which goes against its strategic development trend; 2) Problems exist in the functional structure, hierarchy structure and division structure of RSC.3) Divisionalization may be the best choice for RSC。As a conclusion, the author suggested that an organizational structure mode taking divisionalization as core may be adopted for RSC. He designed the optimization plan and provided further proposals for its successful implementation.