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Organizational Structure Plan

This paper represents an organizational structure plan of a failing division in the company which includes the following troublesome elements: outdated product line, loss of market share, adversarial interdepartmental communication and others.

The main goal of this paper to show how the things can be turned around in this company. The transition from the old organizational structure to a new one is done step by step.


It is known that it’s a rather difficult task to turn a failing organization around. However, a highly skilled manager will be able to cope with this task. As a new manager who has been hired for a failing division in the company I have the major goal to work out a good structure plan to improve the situation in the company.

It is clear that appropriate changes are necessary in order to achieve this goal. I will pay special attention to product lines which are considered to be outdated and to the loss in market share. Also, I will try to improve interdepartmental communication. The problem concerning the competition for internal resources will be solved too. As the duties of a good manager include the ability to plan, to organize and to control, I hope that the organizational structure plan discussed in this paper will correspond to the company’s problematic situation.

The New Organizational Structure

The new organizational structure is the basis of all the processes in the company. First of all, it is necessary to decide what each member of the organization will be doing and what relationships between the departments will be arranged. This information will be represented in the organizational chart. The organizational chart helps to understand the structure of the company which includes the departments and the relationships among the employees. (White, 2001)

It is not an easy thing to determine what responsibilities the employees will have according to their skills and experiences.

The other important thing is that it is of great importance to obtain some reliable and updated information concerning the developments in the division of the company. It will include technology, processes in the division, equipment and different materials used by the employees. It is necessary to analyze the significance of these developments in the organization. This information should be taken from those people who have a direct relation to this issue. All the operations in this division should be monitored thoroughly in order to find out what should be improved and what obstacles should be removed. (Wallace, 2009)

It will be better to reduce the tasks of each employee. It is called job simplification. Another thing is that some specific tasks should be increased for each employee. It is called job enlargement.

One more innovation is that the responsibility of any employee from the given division should be increased regarding the fulfillment of some specific work. All the above mentioned innovations will strengthen the employee’s involvement and can favor solving the problems of inter-department communication which was rather adversarial. (Sanderson, 2010)

The functional managers will report to divisional managers and the last ones will report to corporate managers. Among the functions of employees are the following ones conflict management and collaboration, negotiations and appropriate listening skills, writing successful memos, team building, and so on.

As any division in the company consists of employees, systems and the environment, the change should be done in one of these areas. (Wallace, 2009)

It is better to increase centralization in the processes of employees who perform their direct tasks in order to achieve greater efficiency. (White, 2001)

Transition from Old to New Organizational Structure, the Major Steps:

  1. to develop a strategic plan and to identify the major goals which will include combining of several processes and cost cutting;
  2. to develop a budget for the transition from old to new organizational structure, the changes should provide full return on investment within a certain period of time;
  3. to carry our training of the upper management and the middle management, the moral of all the employees should be maintained;
  4. to stop the possible resistant from the employees of the division using special methods;
  5. to organize an individual division meeting in order to inform the employees of the changes;
  6. to provide training of the employees who will work with new processes and perform new duties;
  7. to award the employees who have made great contribution towards the process which helped to achieve the company’s major goals. (Sanderson, 2010)



The outdated product lines should be replaced with some brand new and improved products. Of course, the corresponding market research should be made. May be, it will be better to launch a new campaign in order to reintroduce the company’ product to the market and to find new business partners and customers.
In order to improve loss in market share it is necessary to find new methods of distribution of product and to change prices or offer good discounts for buyers. As the company’s external environment is influenced by three main factors: the remote, the industry and the operating environment I will try to make some innovations in all of them.


Sanderson, E. (2010) How to Transition from Old Organizational Structure to New Organizational structure. Ehow Money. Retrieved from:<http://www.ehow.com>
Wallace, K. (2009) Change, Transition and Organizational P rocess: What does it all Mean? Retrieved from:<http://ezinearticles.com>
White, K. (2001) The Functional to Matrix Transition. Expert Series. October, 2001. Retrieved from:<http://www.pmsolutions.com/uploads/pdfs/function_matrix.pdf>