The Research On Organization Innovation Of Valin Lianyuan Steel And Iron Corporation

China undergoes the progress from a big steel country to a strong one, which, as a historic course is both an opportunity and challenge for all steel manufacturers. Whereas for Valin Lianyuan Iron & Steel Co., Ltd (hereinafter referred to as Lysteel) located in the inland province, it is confronted with even more challenge. In order to survive from and develop out of the fierce competition, and to realize the goal“big and strong, strong and flexible, flexible and even bigger and stronger”, the reform in organization management should be taken as one of the important drive forces. This article investigates on how Lysteel implements organization structure reform in new competitive conditions, by utilizing the theories of organization structure and organization reform.The article outlines the background and significance of the study. It theoretically summarizes the design principle and influence factors of organization structure and its reform; elaborates the reasons, process and basic trend of organization structure reform; stresses the introduction of main features, advantages and drawbacks and applicable conditions of business-unit structure; and concludes that business-unit structure, as a relatively advanced type is conducive to management through power decentralization and can enhance the flexibility and adaptability of enterprise.It illustrates the internal and external environment of Lysteel and the status quo of its organization structure; describes its development strategy and limitations existing in its organization function; analyzes the overall situation of Lysteel by virtue of SWOT; points out the urgency and necessity of strategy-adaptable organization structure reform and stresses that the execution of organization structure reform, optimization of process flow, enhancement to enterprise flexibility and adaptability play the key role in the formulation and implementation of Lysteel strategy.It describes the design of Lysteel business-unit structure. Applying the organization management theory and starting with the design dimensionality, it reviews the overall target, development strategy and outside customers of Lysteel, proposes the idea for organization structure reform of Lysteel as well as the scenario of implementation, with the precondition of nailing down its corporate strategy and business features.It investigates the operation mechanism and system of the business-unit organization structure; proposes the establishment of profit settlement center and its corresponding award and punishment system; and meanwhile it mentions other issues that need to be taken care of in the course of organization structure reform.