According to Organizational Change Management, acquiring or merging with another company has a profound effect on organizational structure. The deletion of duplicate departments manages cost, yet talent from both companies can be utilized in the resulting corporate structure. However, job functions will be altered to fit the business model of the company, and management positions may be eliminated as well.
Structural change within an organization might stem from internal or external factors. Efficient change management requires the ability to identify what causes structural change within an organization. The ability to identify the signs of oncoming organizational change can help you better prepare for the change and implement policies that will keep your company on a growth path.
Multiple managers or executives within an organization may create the need for change, according to JobDig.com. Employees can either become frustrated with trying to please more than one manager, or employees may find ways to use opposing views by multiple managers to get what the employee needs. When employees encounter duplicate management positions, the structure of the organization needs to be altered to eliminate the excess positions and bring departments into line with the proper individual manager.
As the marketplace changes, so do the structural needs of your organization. For example, as fuel prices rise, customers may begin to demand more fuel-efficient vehicles. If you own a car dealership known for selling large SUVs and vans, you may have to shift your focus to smaller and more fuel efficient cars. This requires bringing in sales people and service technicians accustomed to selling and working on these vehicles. Marketing then needs to change to target the car-buying public, and the old methods should be eliminated.
Changes to the way the company does business can cause structural changes. If your company was used to allowing departments to be autonomous, then a change to a centralized way of doing business will create changes in company structure. If a new department has been created to address a company demand, the company structure must change to accommodate the new group. For example, if the backlog of archived files becomes so large that an archiving department needs to be created, that can change the flow of information in your company and have a significant effect on corporate structure.