A Study On Multidivisional Structure Reform Of H Company

Enterprise organization structure has always been recognized as one of the key elements of management theory.Enterprise organization is a kind of organization whose main purpose is to gain profit through production,circulation or service.Enterprise organization structure refers to structural system formed on scope of work,power and duty while staff cooperation with each other to achieve the same target.The level and range of control change while the business enlarged and developed.Generally speaking,organization structure of company goes through line structure,functional structure,matrix structure and multidivisional structure.The concept of multidivisional structure,reason for multidivisional reform,effects after reform and further solutions to be taken are all the focusing points of the paper.On the basis of case study of H Company,it is proved that structural reform of enterprise shall take a long way,with a comprehensive and systematic model.New organization structure might also bring a series of unforeseeable problems.Management of enterprise shall find out solutions in consideration of sustainable development of company.Established in 1953 and fully emerged into CNPC in June of 2005,H Company has significantly improved the capability on large-scale EPC and PMC project execution,market competitiveness and science and technology development,the turnover doubled year after year.The Turnover in 2010 reached 15.3 billion CNY and H Company has accelerated to build world class engineering company.The original organization structure of H Company can't meet to the requirement of fast development.Choosing a new model that suits for present and future development is a problem to be solved soon.By means of analysis of development course,current managing status and strategic planning,this thesis concludes that multidivisional structure conforms to current development requirement of H Company.This thesis also takes studies and analysis on design of multidivisional structure and model of operation administration.Taking H Company as a case study,this thesis might provide a few advisory and guiding effects for company development.