Guangxi General Construction Company Organizational Structure Change Research

Guangxi Communication Construction Company, formerly known as the GuangxiBureau of Posts and Telecommunications Engineering, was restructured to a joint-stockcompany in2007and listed in Hong Kong in August the same year. Since listing, underthe leadership of Guanxi Communicaiton Service Company, based on the businessprincipal of "grasping the external market, strengthening the internal management", andthe service approach of "honest and trustworthy, accurate management, carefulconstruction, the pursuit of excellence, the owners satisfaction", through paying closeattention to related transactions, and expanding business with China Mobile, ChinaUnicom, government and enterprise customers, the company has undergoneconsiderable development in the competitive market of communication construction,continuously improved service delivery and public image, and has gradually establishedthe core competitiveness.This paper briefly describes the research situation and development trend of theorganizational structure theory. The industrial environment of Guangxi CommunicaitonConstruction Company is analysed by using PEST and Porter’s five forces model. Theresult is the competitive market environment of the state-owned communicationconstruction business is an open and competitive industrial environment. After theinternal strengths and weaknesses analysis, this paper draws the conclusion that theGuangxi company exists both with strengths and weaknesses, facing both opportunitiesand threats from its external environment. The internal factors and external factors areinterrelated and interactive. In order to have a healthy development in the competitiivemarket, the Guangxi company made contingent changes in organizational structure,upon the changes of the external environment and the internal conditions, and shortenedthe compnay’s decision-making chain, changed the old-fashion phylosiphy so as toimprove the market sensitivity and reaction speed, and to improve overallcompetitiveness to remain advantages in the market.This paper also makes analysis on the company’s two changes of organizationalstructure from five contingency factors: organizational goals, organizational environment, people and culture, and organizational size, and makes summaries of thesuccesses and limitations of the two changes. This paper indicates that theunadaptiveness between the organizational structure and the market has significantimpact to company’s effectiveness and efficiency. The organizational structure changeis a continuous process, which conforms to changes in business environment andinternal conditions. It is a process with a beginning but no ending. The state-ownedenterprises should break down the the old ideas of “waiting, depending, and asking”establish the market-oriented business philosophy, innovate insitution and activatemechanism, and keep continuous adjustment of the organizational structure to adapt thedevelopment of the external environment.Finally, based on the summaries of the achievements and limitations of the twoorganizational structural changes of the Guanxi Communication Construction Company,this paper develops that the flexible organizational structure is the developmentdirection for communication construction company. The organizational flexibility canimprove company’s reactive ability to marke, and the inputing of a third-partyorganization is a better approach to improving the company’s organizational function.