Organisational Structure of Respironics -
February 5th, 2011
Respironics, Inc. is a medical supply company that specializes in products that improve respiratory functions. It is based in the Pittsburgh suburb of Murrysville.
Professional & Strategic Ser...
The product structure is organized around product divisions. It can evolve from a functional structure when a company diversifies and each line is large enough to support its own production. This structure has the advantage of a product development cycle, product excellence, and a broad operating freedom. Its challenges lie in divergence issues, duplication, lost economies of scale, and multiple customer points of contact. Common criteria: product features or being first to market is important, multiple products are produced for separate market segments, short product development time is an advantage; products have short life cycles, the organization is large enough to achieve the minimum efficient scale required to duplicate functions.
The customer structure is organized around major market segments. It provides customization, relationships, and total solutions. Difficulties arise in divergence, duplication, and scale. Common criteria: important market segments where buyers have strength, customer knowledge provides an advantage, rapid customer service and product cycle times are required, the organization is large enough to achieve the minimum efficient scale required to duplicate functions.
The front-back hybrid structure contains elements from the product and customer structures. It allows for product excellence at the back end while increasing customer satisfaction at the front end. This structure is best for large organizations that have multiple product lines and segments, serve global customers, need to maximize both customer and product excellence, and have managers capable of managing complexity. The front-back hybrid has several advantages, such as a single point of interface for customers, cross-selling, value-added systems and solutions, product focus, and multiple distribution channels. The complexity of the design can overwhelm an organization.
In terms of organizational development, change is "a set of behavioral science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members' on-the-job behaviors" (Porras & Robertson 1992:723).
Determining weak links in the organization, the causes of problems and acquiring new ideas from the environment all could contribute to radical change at the same time help the company handle it effectively.
Organizational revolution, which is probably more pronounced during recessions, is necessary in order for the company to adapt to external and internal factors. Implementation of radical changes may be necessary in order to overcome some perceived failures and turn it into a success.
Last edited by netrashetty; February 5th, 2011 at 03:14 PM..