Research On H Company’s Organization Structure Change Based On Strategy

Organizational structure change is an important research topic in thefield of Business Administration, but it is also practical issues everybusiness must face. At different stages of development, companies willface a different operating environment and strategy must be adjusted tothe operating environment. Changes in business strategy has led tochanges in the organizational structure, this paper is aimed to investigatethe relationship between strategy and organization structure changes.December2005, Hengyang Municipal People’s Government andHengyang Municipal People’s Government State-owned AssetsSupervision and Administration Commission approved the establishmentof Hengyang H State-owned Assets Management Co., Ltd.(referred to as"H company"). Since its inception, H company forges ahead, and made aseries of achievements under the direct leadership of HengyangMunicipal People’s Government and Hengyang Municipal People’sGovernment State-owned Assets Supervision and AdministrationCommission. However, H company also faces challenges and threats inthe rapid development, so do with internal management issues. Including changes in the design and management of the organizational structure,and the improvement of normative and management efficiency broughtby the changes. H company adopted a functional system structure when Hcompany was first established. At that time H company had a total of fivefunctional departments including Comprehensive Management,Investment and Development Department, Corporate PlanningDepartment, Asset Management Department, Finance Department. Butwith the growing scale of H company as well as the diversification of Hcompany”s business, the original system structure can not meet Hcompany”s operational needs. In order to meet the development needs ofthe new era, H company was reorganized as a group company. Theimplementation of H group company is integrated operations and H groupcompany holds shares of a number of subsidiaries.In this paper, we analyzes the problem of H company’sorganizational structure and the Group transformation process combinedwith the theory by looking back on the development history of Hcompany’s organizational structure. Combined with enterprise life cycletheory, this paper conducted a comprehensive evaluation for H company’sOrganizational structural change program. This paper also applymathematical calculations to measure H company’s ability to change theorganizational structure and pointed out the direction of futureorganizational structure change for H company—division system organization structure. This study has some theory significance andpractical significance for strategic planning and organizational structuralchange for H company, while This study also has a certain referencevalue for domestic research.