Organizational Structure Optimization Of Dongfeng Changzhou Branch

After a phase of rapid development,the economic growth in China has begun slowing down.Our concept on the economic model with fast growth speed has also begun changing.The growth power has been decreasing while the downward pressure has been increasing.The automobile manufacturing industry in China has been in a slump on the supply side.When it comes to the demand side,affected by overall purchasing power,China’s automobile market came to a turning point in 2018,encountering an unprecedented negative growth in 28 years.As a large state-owned automobile group,Dongfeng Motor Company Limited has been greatly impacted and has seen the first drop in nearly six years.The company’s vehicle models with selfowned brands have suffered a serious decline while those with joint venture brands have appeared to be “polarized” in sales volume.Driven by the supply-side reform,Dongfeng Group has begun carrying out a reform strategy to “be slim and keep fit”through re-integrating its production resources,so as to realize the maximized resource utilization.The Changzhou Branch researched in this paper is one of the branches and wholly-owned subsidiaries under Dongfeng Motor Company Limited,and mainly responsible for the assembly of vehicles with self-own brands.The Branch’s production capacity has been under-utilized due to a serious decline in its sales volume.Driven by the reform in the Group,it is proposed to merge Changzhou Branch into the joint venture Dongfeng Nissan Passenger Vehicle Co.,Ltd.(Hereinafter referred to as Dongfeng Nissan),which is now exerting a strong developing momentum,so as to meet the needs for strategic development.Although they both are companies within the Group,there is a large distance between them and the essence is the difference in their organization structure.Therefore,the organization structure of Changzhou Branch needs to be optimized prior to the merger so that certain conditions can be met.This paper has researched the organization structure optimization of Changzhou Branch from the perspective of Dongfeng Nissan.First,problems concerning the current organization structure has been identified.A diagnostic group has been formed to devise a diagnostic model appropriate for Changzhou Branch based on the knowledge of organizational theory and in combination with operation characteristics of mature plants within Dongfeng Nissan.The organization structure and characteristics as well as the organization efficiency of Changzhou Branch have been comprehensively obtained through questionnaire and interview;key problems have been separated out of those diagnosis results.Second,the optimization scheme has been proposed.Theoretical analysis has been conducted upon the problems diagnosed and the nonconformities have been analyzed in depth.The organization structure of Dongfeng Nissan has been taken as the benchmark and a practical optimization scheme has been formulated with reference to opinions collected from experts.Finally,the optimization scheme has been implemented.The train of thought has been straightened through consultancy and an advancement group has been formed.Risks arising from advancement process have been reduced for the smooth optimization thanks to clear plan nodes,the analysis on potential motivating factors and resisting factors,as well as the effective support plan based upon identification of and analysis on key support factors.Taken a branch of Dongfeng Group as the breakthrough point,this paper has researched organization structure problems through diagnostic approach.Those findings serve as important references for subsidiaries and branches within the Group.Meanwhile,the diagnostic model adopted in this paper has systematically summarized the contents and the influencing factors of organization structure,providing a thinking path for enterprises in need of organization structure adjustment.