In: Operations Management
300 word minimum.
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Head to the Internet and find an example of a company's organizational chart. Analyze the design and provide a summary. What is the basic design of the organization? Why might the organization have selected this structure? What impact might changing the organizational design have for the company?
The company that I chose is Reed Elsevier PLC, a multinational publishing company headquartered in Amsterdam. Elsevier has different business units namely, Lexis Nexis, Elsevier and Reed Business. To be specific, I have cited below the structure of Elsevier, a publishing division for journals and books.
The business uses both divisional and functional organizational design. Since the company has different business units, they are divided into different business units (divisional organizational design) such as Lexis Nexis, Elsevier, Reed Business, etc.
The different business unit is now organized based on the functions. Elsevier focuses on journal and book’s publication. Hence, they are grouped based on the functions. The journal publication has different expertise such as the application team, supplier team and the different teams by Journal Managers. This functional departmentalization makes it easier for focusing on the performance of the publication of the journals. Similar for books which has different expertise such as application, supplier team and the different teams by the Project Managers (books are projects).
The organization selected these above mentioned organizational design to effectively manage and organize the different units of the business. Since the different business units need to be focused intensely to avoid any deviation or loss in business, the organizational design chose to closely monitor the different functions of the business as books and journals.
Impact- Companies adopting new organizational structure requires serious and valid input to change the organizational design. Resistance to change is constant in all organizations. Employees who are comfortable with the present roles and responsibilities might tend to be offensive to the change making them stressful. Changes in the organizational design result in cost and time investment. Additional resources might need to be selected such as employees with expertise need to be selected again to accommodate the new organizational design.