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Lenovo's Structure and Design
Since Lenovo was established in 1984, It had experienced several times organizational structure ad????ment. My research will base on the 2009 version. On 2009, Lenovo announced its biggest adjustment on organizational structure. This is the second adjustment after purchase the IBM pc apartment. The incorporation with IBM brings in a new culture and a group of employees. At the same time Lenovo is facing its first loss in quarterly results. Lenovo have to figure out a way to pass though (Research Triangle Park, 2009).
The advantage of matrix structure
Compare to ordinary divisional structure. As we know Lenovo is a large PC group dedicated to building personal computers. One of the most obviously advantage to adapt the matrix structure is it will increase the response to the markets. Produce team in a matrix structure is not fixed, which means managers or employees with different experience can easily transferred from one team to other team. It will increase the flexibility during management and also reduce the cost of subunit orientation. Because of that company can also have advantage on Work Motivation. The structure designs also have impact on work attitude and behaviors. Matrix structure allows more freedom over their work experience. It can enhance employees' work quality and innovation during the work (G, George M. J & Jones R., p. 545). Lenovo has very wide produce line and serves for customer all over the world. For such a PC company, innovation, operational efficiency and customer satisfaction is so important for them to survive in competition. Regular Functional structure and divisional structures are no longer meets the need of operation. If Lenovo didn't use the Matrix structure, the operation cost will be very high, and to many products will be very hard for lots of department to cooperate with each other. If the structure is too flat that it will be hard for senior mangers to take care so many works.
The disadvantages of matrix structure
However, the structure is more complex than other structure. This form of structure has dual authority that is unclearly defined title of position some time will lead to role ambiguity. Under the situation of unclearly responsibility, people may create their own control structures (G, George M. J & Jones R., p. 546). In order to ensure the implement of such a structure, the product managers and functional managers have to share their power and maintain balance between two sides.
Definition of Organizational structure and design
Before discuss on Lenovo's structure, one thing need to be clarify. The definition of Organizational Structure is a formal system that helps managers manage employees and cooperate with others to achieve the organization's goal. The relationship inside the structure is well-designed for some certain purpose. And organization design is the process of decision how to arrange the task and job relationship (G, George M. J & Jones R., p. 535).
The purpose of reorganization
As long as a company growth, it must face bottle neck during its expanding, so company usually does some reorganize to meet what they need. On 2009, March, Lenovo announced a structure change that has two new business units replace its exiting regional market organizations. These two new business units will individually focus on customers in mature markets and customers emerging markets, the purpose of this change is to improve company's performance and better serve customers. In general Lenovo is adapting Matrix Structure. As I mentioned before, In 2009, Lenovo is facing big environment change both inside and outside the organization. The PC industry is hard hit by global economic crisis. To meet the economic challenges, Lenovo believe the only way is to improve its operation efficiency and reduce expenses. In order to achieve its goal, Lenovo focus on improving its competitiveness and profitability of its core businesses (2008/09 Annual Report Lenovo Group Limited, 2009). Integration was also need to be improved. Lenovo edited it's marketing model in order to cooperate it's strategy of innovation and better customer satisfaction. In the new 2009 adjustment, Lenovo divided its marketing department by degree of mature instead of region. Mature markets include: Canada, Israel, Japan, Unite State and Europe. Emerge markets include: Inland China, HongKong, Macao, TaiWan, Korea, ASEAN. The division is very special compare to regular regional division. After the change, Lenovo broke the limitation of regional divisions and was able to outsource its successful management model. It will more fit the need of marketing. After the change, Lenovo may have a better control of the new emerge markets. Lenovo may also have a good impact on its executive capacity.
Lenovo Culture and Ethics
At the begging we should know that the definition of Organizational culture is values, beliefs, and standard that shared by employees and influences how they think, feel, and treat each other and people outside the organization (txt, p567).
There are several factors will affect organization's culture.
Lenovo was established by Chuanzhi Li. He said: "The Lenovo Way inspires our people to do what we say and own what we do." A strong culture makes us growing faster and more competitive, and The Lenovo Way is becoming a key competitive advantage (2010 Annual Report Lenovo Group Limited, 2010, p. 8). The description of Lenovo's strong culture gives us a general idea of what Lenovo people behave.
Characteristics of people within the organization
Base on attraction-selection-attrition model, people attracted and selected by organization, and as long as time passed, people with same value left. Also the personal values of the founder of an organization will have strong impact on the organization's culture (text, p574).
The ways that Lenovo contribute to its culture
Lenovo have its own Ethics and Compliance office. The ethics and compliance program not only encourage a high standard of business conduct but also enforce commitment to compliance with the law. The office uses much method to raise the level of important of ethic of all Lenovo employees. For example, giving guidance, or provide consultation via email or telephone (Ethics in our New World Company, p. 4).Lenovo also do all kinds of efforts attempt to make it become a better company. On Employees parts, Lenovo provide learning, growing and working environment for employees so that they can have more talents people willing to work with in the company (Ethics in our New World Company, p. 7). And it's a firmly commitment for manager to fair and equitable treat all employees (Ethics in our New World Company, p. 8). Lenovo will not discriminate employees base on race, color, religion, gender, national origin, ethnicity, sexual orientation, sex, age, disability, veteran status or any other characteristic protected by law (Ethics in our New World Company, p. 9). Lenovo actively promote diversity in work force. Which is a very good way to encourage innovation (Ethics in our New World Company, p. 10). Provide a safe and healthy work environment for employees (Ethics in our New World Company, p. 11). Prohibit any drug or alcohol abuse. Managers, HR, Legal Department representative, and the Ethics and Compliance Office will response for that (Ethics in our New World Company, p. 12).
In general, Lenovo believe that culture is strongly relates to its success. Lenovo do care about how to organize and cultivate its employee in order to gain advantage in international competition.