Analysis of structure organization of Sinohydro Corporation Group–4 – US Business Here
Friday, October 23

Analysis of structure organization of Sinohydro Corporation Group–4

4. Improvement suggestions to the organization structure of Sinohydro Corporation Group

 The flatization of organizational structure thinks that through reduce middle layer, decentralized control, flexible order, enlarge the span of managerial responsibility to achieve flatization of the organization structure. The flatization of organizational structure can reduce the distortion of message flow from subordinates to higher level management, reduce the distortion of message within market and customers, it will help the manager to manage the market more accurately and capture the changes in the market more efficiently. The subordinates will be more easily to understand the decision making intention. The organization will be more flexible and creative in which way to improve the efficiency of the company.The flatization of organizational structure is the future of company development.

The assets of state owned company is owned by the people. According to law, the employees of the state owned company is the master of the assets of the state. At the same time, they are the manager of the state owned company. The company will be more likely to pursue their own interest. The state owned company must go through the shareholding reform and establish modern corporate governance structure system. Divide the ownership and right of management, set up proper incentive system is the way to go.

4.1 Merging and Reorganization of specialized department

Members of the Sinohydro Corporation Group developed independently during the planning economy time. For the need of production, the department setting of on foundation treatment, manufacture and installation of metal structure and installation of electromechanical device are similar. There are large amount of professional member companies with smaller scale in the corporation group. Since the main business of the corporation is the construction of hydro power construction. Most of the member enterprises are in the same business. Every member enterprise of the corporation is a independent legal company. Each company has its own performance pressure. There is a sever competition within the market between each other. Overall , the member companies in the corporation group has the problem of similar business, varied strength and horizontal competition. The mitigation strategies are as follows:

  1. Those companies with weak marketing and are unable to live independently should be merged into the companies with similar business which are in healthy operation stage. In this way, the overall strength of the company can be increased through resource complementarity.
  2. For the need of production, the member enterprise of the company has accumulate tons of experience in certain special field under the long term planning economy background. With the development of the marketing economy, this structure can no longer satisfy the need for wellregularized and management well optimized of the company. The company should adjust the business structure of the group. The resources should be given to the companies with corresponding strength and advantage. It should pursue the road of professional development.
  3. The member enterprises of the Sinohydro Corporation Group all has its own comprehensive unit and professional unit. Quite a few member enterprises has relatively small scale but with lost of secondary units. The scale of operation for each unit is even smaller, the market influence of each is very limited. This will lead to wasting of resources and large managing cost. Thus, the member enterprises of the group should be restructured and merge the subordinate companies together. Reduce the number of the subordinate companies and enlarge the managing scale of the subordinate companies. In this way to improve the comprehensive strength of each company.

4.2 Cancel unnecessary managing levels

Sinohydro Corporation Group has subordinates of engineering bureau( company and manufacture), Engineering bureau( company and manufacture) , integrated lower office. It forms the four layer management system from Corporation Group to engineering bureau to integrated lower office to subjects. Sinohydro Corporation Group belongs to labor intensive industry. the four layer management system from Corporation Group to engineering bureau to integrated lower office to subjects is actually needed. However, there are many managing departments in some function. For example, some construction bureau is in charge of project department, project department is in charge of production department. This too much managing level would cause the problem of human resources wastefulness and low efficiency in management. Therefore, the necessary managing department should be canceled. The information can flow freely with the group, efficiency can be increased.

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