What causes changes in the organizational structure?
changes in the organizational structure may result from merging or acquisition, economic changes and process changes. These changes are usually initiated due to the desire of the organization to reduce costs, improve processes or increase communication. After the merger or acquisition, the company may have to be reorganized to avoid duplication of processes and maximize the strengths of both organizations. Economic changes can also enforce changes in the organizational structure to improve processes or reduce costs. Process changes can also lead to reorganization when society wants to become a more efficient or change strategic direction.
mergers and acquisitions usually require that one organization absorbs the other organizations and processes of the other organization. Especially if both organizations had different hierarchical structures, changes in the organizational structure may be needed. The new organizational structure will have the strengths of both non -business to maximize the potential of the merged enterprise and reduce the weakThe site that either the organization brought to the table. If the company merges or acquires a company, it must maintain its organizational structure, another organization must still change in order to monitor resources and decisions made in both organizations.
Economic changes can enforce changes in the organizational structure. When the company cycle falls into recession or depression, businesses often reorganize to reduce costs or increase efficiency. If the company has a high hierarchical structure, it can find that centralization decisions can help it increase the productivity and satisfaction of customers in reducing employee turnover. Some organizations at this stage of the cycle will decide the outsourcing department or to remove the need for certain positions. When the business cycle is in the expansion phase, the company can find that changes in the organizational structure allow him to better support his desire to invest in research teamsand development or increase the number of products.
Process changes can cause changes in the structure of the organization by removing unnecessary steps or by adding new measures. Process analysis within the organization may find that employees or departments basically perform the same tasks. In order to remove any duplication of processes, employees or departments can be assigned or eliminated completely from the organizational structure. Business can also find that the basic steps are missing, are not assigned to a person or department or are no longer necessary. If this were the case, the company would be reorganized to suit the missing steps or make sure that employees were completing steps in accordance with the current goals and goals.