A great way for leaders to begin solving problems with organizational structure

Question

A great way for leaders to begin solving problems with organizational structure is to ask three important questions:

Is the problem the structure, or is the problem the way leadership is managing the structure?

Does the structure of the organization match the organizational mission, vision, and goals?

Has the design of the organization been compromised due to accommodating various employees?

In your first post, please respond to the question below.

To apply these ideas practically, describe an organization that you have been part of in the past or that you are currently part of. IF that organization went through a change in structure or if you think it NEEDS to go through a change in structure, use and answer the three guiding questions above to determine how a solution to the structure could be reached. What questions would you add to this list? How would your proposed question(s) benefit the organizational structure?

Explanation / Answer

Recently my present organization, a leading FMCG went through the organization structural change. The organization has shifted to a multidivisional structure, where the workforce is divided into sections based on product or service areas and/or topographical regions, to expand & cater to the customer needs.

Problem was with the senior leaderships with issues of accountability for the results of local operations. There was a lack in ability to respond to the frequent market shifts & consumer preferences, with a single decision-making panel at head office level.

An organization’s mission, vision, and goals express, what an organization is, why it exists & where it plans to achieve over a period. With the main aim (mission, vision, and goals) of the organization speaks of remaining competitive & giving the best to cope with the consumer requirements, the shift to the new org structure matches precisely with the same, therefore making it more relevant and effective.

The organization has used its huge workforce (at various locations worldwide) to its strongest strength, for the org structure shift. With the new Organizations multidivisional structure, its division of workforce (Divide and Rule policy) increase the overall efficiency of the organizational structure of the company. With own management and executives there is a greater level of control & corporation inside and with other divisions. With more efficient, financing controlling and budgeting (with smaller entities) the organization has been able to reward the workforce more aptly, as per their performance, and therefore increases the motivation and productivity of the employees, and also profit margins at the org level.

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