Case 1 waves Company
Wave is set up in 1990, a production and management of daily cleaning company, because of
its innovative products, unique marketing approach and quality services, products subject to
consumers of all ages. Dong Gang, president of the company, led by rapid development.
However, as the company's development, the company president, and gradually found that the
organizational structure has been running well, now can not adapt to environmental changes both
inside and outside the company's needs.
The company was originally designed under the functional organizational structure, finance,
marketing, production, personnel, procurement, research and development constitute the
company's various functional departments. As the company to grow and develop, the product has
expanded to shampoo hair conditioner, shower gel, lotion, sunscreen, hand cream, hand soaps,
and many days of supplies. Diversity of products on the company's organizational structure
proposed new requirements. The old structure has seriously hindered the company's
development, numerous contradictions between the functional departments, in this case, the
president of Dong Gang is always to make a major decision in person.
Thus, in 2000, president of Dong Gang make a decision that, according to the company
product range is divided into eight independently operated subsidiaries, each operating a branch
on their respective full responsibility for the products, in the for-profit under the premise of branch
to decide the specific operation of the parent company will no longer interfere. However, after the
reorganization of the company, long before the company has many new problems have emerged.
The branch manager, often in spite of the head office policies, and fragmented; and branch
offices in the procurement, personnel and other functions there have been too much duplication.
Shows that the president of the progressive front, the company is breaking down into a number of
separate departments. In this case, the president aware of their own on the road in the division of
power gone too far.
As a result, President and branch manager Dong Gang ordered to recover some of the terms
of reference, emphasizing decision-making power after the president has the following: more than
100,000 yuan of capital expenditures; new product development; the development of strategies;
key personnel appointments, and so. However, the terms of reference be withdrawn, the branch
managers have complained that the company's policy of swing, and some even submitted his