Study On Organization Structure Optimization Practices Of A Family-Owned Company

Since the Open-door reform policy has been implemented in China, thefamily-owned enterprises have been growing with a high speed as a whole.At present the private economy has contributed more than a half ofChina's total GDP and become the new points of economic growth with amuch higher average growing speed than state-owned companies. A greatlot of private enterprises similar to company M have emerged during thisperiod. However, there are also many kinds of shortcomings exposed inthese companies after they have successfully experienced the start-up andsurviving stages under family management. The shortcomings areembodied in the highly centralized power of the owner, poorunderstanding of the human resource management and looking down onthe construction of corporate culture. At the same time, the entrepreneurstend to be arrogant after their previous success and pay less attention tothe continuous improvements for their companies. It is always too latewhen the accumulated risks which hid underneath the seeming prosperityexplode one day. Therefore, during the development stage, only by doingdeeply self-diagnosis and keeping changing can the companies improvethemselves continuously and face the increasingly fierce competition.This paper takes the real case of company M's inviting outer brains todiagnose itself as a example, to explain how a diagnosis is going and therelative methodology. It has also generated a concrete proposal onorganization structure optimization, improvement of human resourcemanagement and corporate culture construction. Hopefully it could behelpful for other companies who plan to do the similar diagnosis.Nevertheless, organization structure change is not so easy. Every swordhas two sides. It could make an enterprise much better, or hurt it painfully.So this paper also takes a look at the effects and difficulties during theimplementation by tracing the process of a group of MBAs who acted aschange agent from their joining company M to their leaving in 6 months.It tries to find out how a private-owned company should launch aorganization structure change and the key factors of a successful change,which may be enlighten for other practicers.