Diversification Enterprise Organizational Structure Design Problems

In China, more than half of the listed companies have implemented varying degrees of diversification. The key to success of diversification is whether or not companies can allocate resources reasonably in order to achieve utility maximization. And the efficient allocation of resources depends on the effectiveness of organizations. So selecting a proper organizational structure of enterprises is very important for the diversification.In this paper, studying the organizational structure design of our diverse enterprises is the main purpose. This article describes China's status of the organizational structure of diverse enterprises, Unitary Structure dominated, Holding Company and Multidivisional Structure is not been widely used. Based on the analysis of the problem of diverse enterprises, this paper analyzes the cause of the problem.In this paper, studying the organizational structure design of our diverse enterprises is the main purpose. This article describes China's status of the organizational structure of diverse enterprises, Unitary Structure dominated, Holding Company and Multidivisional Structure is not been widely used. Based on the analysis of the problem of diverse enterprises, This paper analyzes the cause of the problem. The main response for the organizational structure design of our diverse enterprises is. First, Attention should be paid to the design of the organizational structure of enterprises. Second, Enterprises should according to their degree of the scale and diversity to choose the organizational structure. Cooperative Multidivisional Structure fit the Enterprises which adopt related diversification strategy; Competitive Multidivisional Structure fit the Enterprises which adopt related diversification strategy, Integration of Holding Company and Multidivisional Structure fit the Enterprise Group which adopts the diversification strategy to Achieve the maximization of organizational effectiveness. Third, diversified enterprises should strengthen to introduce and cultivate talent; this is the premise of the Choice of organizational structure.