A Case Study On Organizational Change Of Multidivisional Structure In Agricultural Bank Of China

Since the beginning of the 21st century, the large state-owned commercial banks in China, especially the national ones including Industrial and Commercial Bank of China, Agricultural Bank of China, the Bank of China, China Construction Bank and so on, have the have pushed the reform of share-holding system. With the reform as a milestone, the modern commercial bank management systems have been gradually established tending to normalization, standardization, and patterning. The reform of share-holding system of large state-owned commercial banks has clarified the property right relations which have been disputed long in history, and also made clear about the rights, obligations and responsibilities. The strategic partners at both home and abroad have been connected in, and as well as the management theories of large western banks and corresponding organizational structures have also been adopted, providing a solid foundation for the multidivisional structure reform.In recent years, Agricultural Bank of China has been in a rapid development both in the management improving and the scale expanding. The organizational system can no longer adapt to the change of the developing strategy, the business process and normal operational management. Therefore, this paper takes the multidivisional structure reform in Agricultural Bank of China as a sample case, introduces the current situation, reform motivating factor and the reform effectiveness. Then, the problems in the multidivisional structure reform have been analyzed, including the inhibited communication among departments, the decrease of efficiency, the employee unfitness to new organization system, etc.Furthermore, from the perspective of the organizational structure design, the path dependence of organizational behavior and the organizational interface management, the causes of above problems has been unveiled, consisting of the lack of coordination mechanism among the organization, strategy and process, the incomplete interface management mechanism, the blocked authorization system and poor staffing and performance management. In the end, several suggestions of multidivisional structure reform have been brought forward, including optimizing the strategy, organization and process dynamically, improving the interface management among departments and so on.