Chapter 303 Matrix Structure
"The word enterprise organization originated from the division of large Western enterprises at the beginning of this century. The specific classifications include u-type organizational structure, m-type organizational structure, matrix structure, multi-dimensional system and super business unit structure, h-type organizational structure and simulated decentralization structure, etc.."
"Enterprise organization is a dynamic combination activity process, a management structure formed during the business activities of the enterprise. Reasonable division of enterprise organizations plays a huge role in the management of an enterprise."
After hearing Zhao Guoyang say this, Zhang Zhizhong interrupted: "Guoyang, according to you, should the party and branch in our factory be divided into enterprise organizations? This is an organizational structure that Western countries do not have? If there is another country, will such an organization still exist?"
When Zhao Guoyang heard this, he nodded and said, "I asked this question well by Zhang Shu*. In fact, in enterprises, organizations are divided into functional organizations and non-functional organizations. Although enterprises in Western countries do not have party and branches, they also have similar non-functional organizations such as Honors Colleges."
"And these non-functional organizations are also an indispensable part of Western enterprises."
After Zhao Guoyang finished speaking, several leaders nodded and expressed satisfaction with his introduction.
Mu Aijun said even more radiantly: "Guoyang, your statement is very novel. The division between functional departments and non-functional departments also applies to our state-owned enterprises."
"That's right, Director Mu!" Ma Jian also nodded from the side and agreed.
"Guoyang has taught us a course on popularizing corporate structures. It's really gaining knowledge."
After listening to Zhao Guoyang's remarks, Wang Youchang's attitude also changed a little.
He couldn't help but rush to Zhao Guoyang, who was sitting opposite, and raised his hand and said, "Guoyang, continue to talk about the classification of these Western enterprises and organizations."
Zhao Guoyang said "yes" and continued to tell.
"At the end of the last century and the beginning of this century, some large Western enterprises generally adopted a vertically integrated functional structure divided by departments according to their functions, namely the U-shaped structure."
"Its characteristic is that the enterprise is divided into several departments according to its functions, such as production, sales, development, etc., and each department has little independence and is directly managed by the senior leaders of the enterprise, that is, the enterprise implements centralized control and unified command."
"The U-shaped structure maintains the advantages of centralized and unified command of the linear system, and absorbs the advantages of the functional system playing the role of professional management functions. It is suitable for environments where the market is stable, the enterprise organizational structure has few product varieties and high demand price elasticity. However, its disadvantages are also obvious..."
Zhao Guoyang paused and continued: "Because the U-shaped structure relies too much on senior leaders, they have fallen into daily production and operation activities and lack the energy to consider long-term strategic development."
"In addition, administrative agencies are becoming larger and larger, and it is becoming increasingly difficult for various departments to coordinate, resulting in an increase in information and management costs. Therefore, it is gradually eliminated by the times."
"In the early 20th century, General Motors, the American company, first changed the organizational structure within the company to adopt an m-type organizational structure, achieved remarkable results, and gradually became popular all over the world."
After Zhao Guoyang finished speaking this paragraph, Mu Aijun couldn't help but applaud.
He clenched his fists hard and said, "That's right, Guoyang, you said so well. When Yiyi gave me suggestions before, she wanted our Hongda Machinery Factory to use this type of organizational structure."
After hearing this, Zhang Zhizhong, who was sitting next to him, was very happy.
He turned to Mu Aijun and said, "Director Mu, your family Yiyi is a top student at Coventry Business School. In the future, we will serve large companies like the Fortune 500. If you ask her to give advice to such a small factory, isn't it useless to use his talents?"
After Zhang Zhizhong finished speaking, everyone burst into laughter with kindness.
Mu Aijun waved his hand and said, "Hey, Lao Zhang, what's wrong with you. What's wrong with a top student? A top student has learned a lot of skills abroad, but he can't forget his roots. Besides, helping me with ideas is also what she has learned to put into practice."
"Haha, Director Mu said it well."
Zhang Zhizhong nodded happily and signaled to Zhao Guoyang who was smiling and silently, "Guoyang, you've hit you out of trouble. It's okay, continue to talk about yours."
Zhao Guoyang took a sip of water and moistened his throat and continued to preach: "The so-called m-type organizational structure is also called a business department-type organizational structure in Western countries."
"The basic characteristics of this structure are that strategic decisions and business decisions are separated. Semi-autonomous business divisions are established based on business by products, services, customers, regions, etc.."
"Under this organizational structure, the strategic decisions and business decisions of the enterprise are responsible by different departments and personnel, so that senior leaders can free themselves from the heavy daily business operations, concentrate on the long-term business decisions of the enterprise, supervise, coordinate the activities of various business departments and evaluate the performance of each department."
Zhao Guoyang gestured with his hands and made a summary and comment: "Compared with the traditional U-shaped structure, the m-shaped structure is undoubtedly more advantageous. Whether in terms of management or flexibility, it is more suitable for the business development of modern enterprises."
"Well, we probably understand what Guoyang said. What you mean is that our factory also has this m-shaped structure, right?" Lian Hongjun, the chairman of the trade union who had not spoken, asked.
Even the Red Army basically asked the voices of several factory-level cadres.
After Zhao Guoyang made such a hard explanation, everyone thought that he must have a M-type organizational structure in the factory.
Zhao Guoyang shook his head slowly and said, "No, I don't mean that. In fact, compared to the m-type structure, the matrix structure may be more suitable for the current situation in our factory..."
"Oh? Matrix structure? What's going on? Guoyang, continue to say it!" Mu Aijun looked at Zhao Guoyang with interest and said.
Zhao Guoyang smiled at Director Mu and explained slowly: "The so-called matrix structure is actually an evolution based on the m-type mechanism."
“It combines departments divided by functions and groups divided by projects, to form a matrix that allows group members to accept dual leadership from the group and the functional department.”
"The characteristic of matrix structure is to establish a specialized organization with cross-functional departments around a special task. This organizational structure is fixed, but the personnel are changed. You can leave after the task is completed."
Zhao Guoyang's eyes slid over several leaders one by one, and said with a point of view: "The reason why I think the current situation in our factory is more suitable for this structure because our factory is in the period of transformation."
"We can see the production of frames and other iron parts as a project; the production of motorcycles can also be seen as another project. When there are little changes in the existing department, join the project team, so that resources can be better integrated and work efficiency can be improved."
After letting the leaders digest it, Zhao Guoyang continued: "As for the several structural forms that Western enterprises still have, such as multi-dimensional structure, super business unit structure, and H-type organizational structure, the current situation in our factory are not very practical. Here, there is no need to discuss it."
"Well said, well said, Guoyang! Your explanation has taught us a good lesson!" After Zhao Guoyang finished speaking, Mu Aijun was the first to take the lead in applauding.
It can be seen that Director Mu was quite satisfied with Zhao Guoyang's explanation and admired it very much.
Zhang Zhizhong and Mu Aijun had the same views and praised Zhao Guoyang for a few words.
Although he had a wrong chance of dealing with Zhao Guoyang, a young man, Zhao Guoyang could leave a deep impression on him every time he deals with him.
In addition to these two bosses, Ma Jian is also a staunch supporter of Zhao Guoyang, and he always has a strong attitude towards him.
As for Wang Youchang, although he did not agree with the idea of Factory Mu's business and adjusting the factory departments before, after Zhao Guoyang's remarks, this person was finally convinced.
However, Wang Youchang still has some things he doesn't understand and wants to ask clearly.
Looking at Zhao Guoyang with a calm expression, Wang Youchang asked bluntly: "Guoyang, do you think our factory really needs departmental integration and reform?"
Zhao Guoyang nodded without hesitation and said, "Yes, Director Wang. I agree with department reform. As for the reasons, I personally think there are three points."
Zhao Guoyang stretched out his right hand and spread his fingers to Wang Youchang one by one, saying: "First of all, our factory is in a great period of transformation. Taking advantage of this east wind, if we can adjust this department and promote it in a smooth manner, it will undoubtedly be beneficial or disadvantageous to the development of the factory in the next stage."
"Secondly, our existing organizational structure is indeed worth criticizing. For example, our Technical Department, Zhang Chaoyang, Chang Yuan and others are responsible for both the frame and the fuel tank, and sometimes they also make guest appearances in the complete vehicle design of scooters. Such multi-head distribution is actually very unreasonable and is prone to conflicts and differences."
"If we can pass the reform of the department, we will add one or two working groups. Although they are all from the technical department, you are in this working group and he is in that working group, so who is responsible for what projects and who is responsible for what responsibilities will be clear at a glance."
After Zhao Guoyang said these two points, several leaders in the office were full of recognition.
Obviously, Zhao Guoyang's words were about their hearts.
Wang Youchang himself also echoed: "You are right about these two points in Guoyang. Just like Huang Xiaohua from our Technical Department, he is nominally responsible for wind fire extinguishers, but in fact, wind fire extinguishers have long been mature products, so he doesn't need to ask about it at all."
"Now if he wants to do something else, he will push back and forth. If everyone's tasks can be allocated clearly, it will undoubtedly be a good way to curb the occurrence of this phenomenon."
Chapter completed!