Analysis And Optimization Of Organization Structure Of LH Company

Organizational structure change is common issue in enterprises management practice. and one hot research spot in academic as well as consulting field. Facing the internal and external environment factors’ change, the enterprises must change organizational structure to ensure the strategy implemented successfully.LH company, the research object in this paper, has been implemented the transformation of traditional coal chemical industry to new coal chemical industry from 2010. In past few years, great change has happened in the company’s external environment, while the current organizational structure showed signs of failure. The next three years, significant changes will take place in internal and external environment of the company. so, the company organization structure must be optimized. The structure analysis and optimization project is proposed under this background.Under the guidance of the related organization structure theory, the diagnosis, analysis and optimization of the LH company organization structure had been finished and some suggestions to optimize the organization structure was put forward. First, the effectiveness of the existing organization structure was evaluated through the analysis of organizational issues signs after the review of both the development history and the organization structure change of LH company. Secondly, the the existing functional organization structure was diagnosed systematically to find out the deep-seated problems, which are shown at various levels such as the centralization degree of power, organization structure, division of labor, functional completeness, institutions, management ranks and management range, and systematically analyzed the deep reason of situational variables. Thirdly, the various developing trend of both internal and external environment in near three years’ future was summarized comprehensively, and the influence of all the key factors on the organizational structure was analyzed, based above, the optimization strategy or direction was cleared. Finally, a new solution for the organizational structure of LH company in the future three years was proposed.The study found that the existing organizational structure shows many problems in the degree of centralization, division of labor, weakening or loss of function, unreasonable institutions, management ranks as well as management range, which happened owing to the major changes of the company’s internal and external environment. In the future, the company will enter a new stage of development while the factors such as the strategy, resource, structure, scale, external policy environment as well as human resources conditions will change significantly. Moreover, some factors including technical processes, management maturity were ignored to modify the current organizational structure. Therefore, LH company should increase decentralization degree, and should take the difference management model for both business to improve the management efficiency of the organization. The paper conclude that LH company should intensify the separation of powers and select Multidivisional Structure.The new organization structure solution must meet the development of LH company in near future greatly. Some suggestions were put forward for the implementation of the organizational structure.Obviously, the research of this paper directly benefits the management improvement of LH company, and this paper is hoped to be a guidance in the organization management for the enterprises of coal chemical industry. In addition, the important practical value is expected for the applied research in the field of organizational structure.