Study on the Organizational Changes of Sichuan Yingxiang Industry Group

The organizational theory is an important branch of the system of modern management science, which mainly studies entrepreneur's organization .The subjects of the theory include all kinds of problems in organizational operations, such as organizational environment, structure and size of organization, technology, power, communications in the organization, and organizational culture. With the a rapid development in the 20th century, the organizational theory becomes more and more mature and provides ways of thinking and theory structure for observing and analyzing organizations as well as the organizational changes. However, when organizational changes have taken place in many entrepreneurs in China to meet the demands of external and internal environments, there is a lack of modern organizational theory of contingency and systemization as the guidelines. As a result, the process of organizational changes is not planned rationally, which buffers the development of organizations. After giving a rough sketch of a corporation, this paper employs the modern management theory, especially the organizational theory, to analyze the main contingency factors by which organizational changes of the corporation are influenced. Based on those analyses, some vital measures are introduced in this paper for the corporation to make its organization better. In the end, this paper outlines several strategies for organizational changes of the corporation. Those strategies can be applicable to other enterprises in China. Therefore, the situations of the corporation named Sichuan Yingxiang Industry Group are presented in Chapter 1. The content of this chapter includes the history, size, operations and efficiency, and main business units of Yingxiang Group, as well as its organizational structure, division of management functions, specialization and departmentalization in works, centralization and decentralization, communications and adjustments in organization, human resource management and organizational culture. This chapter gives an overview of Yingxiang Group. In Chapter 2, this paper uses the organizational theory to analyze respectively six contingency factors by which organizational changes of Yingxiang Group are influenced. Those important factors are organization environment, entrepreneur life cycle, organization size, corporation strategy, technology, and human resource. Based on those analyses, the goals of organizational changes in Yingxiang Group are set up. In Chapter 3, five vital measures are introduced for Yingxiang Group to accomplish organizational changes. To achieve its targets, Yingxiang Group should adopt human resource management and marketing management as its key management functions. At the same time, vertical hierarchy should be adopted and power of decision-making should be decentralized when an effective control system has been established. Besides this, Yingxiang Group should build and practice a perfect management norm. Furthermore, creating a learning organization is a useful means to carrying out organizational changes. The last chapter discusses the strategies for organizational changes of Yingxiang Group that also can be employed in other enterprises in China. Organizational changes must be promoted carefully but positively, with many reform measures adopted. At the mean time, the process should be planned and designed with prudence, and the resistances in organizational changes should be eliminated.