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УДК 334.7
FORMS OF ORGANIZATIONAL INTEGRATION AND DEVELOPMENT IN THE GLOBAL ECONOMIC ENVIRONMENT
Yang Linlin Scientific supervisor - E. V. Sumina
Reshetnev Siberian State University of Science and Technology 31, Krasnoyarskii rabochii prospekt, Krasnoyarsk, 660037, Russian Federation E-mail: 1069406850@qq.com
Organizational integration is an important basis for the implementation of the integration strategy of the enterprise. Organizational integration of the enterprise includes two aspects of organizational structure integration and organizational management integration. Based on the analysis of the reasonable connotation of the two-tier integration, the basic strategy of implementing organizational integration is discussed.
Keywords: Organizational structure, organizational integration, organizational development.
ФОРМЫ ОРГАНИЗАЦИОННОЙ ИНТЕГРАЦИИ И РАЗВИТИЯ В ГЛОБАЛЬНОЙ ЭКОНОМИЧЕСКОЙ СРЕДЕ
Ян Линьлинь Научный руководитель - Е. В. Сумина
Сибирский государственный университет науки и технологий имени академика М. Ф. Решетнева Российская Федерация, 660037, г. Красноярск, просп. им. газеты «Красноярский рабочий», 31
E-mail: 1069406850@qq.com
Организационная интеграция является важной основой для реализации стратегии интеграции предприятия. Организационная интеграция предприятия включает в себя два аспекта интеграции организационной структуры и интеграции организационного управления. На основе анализа разумного значения двухуровневой интеграции обсуждается базовая стратегия реализации организационной интеграции.
Ключевые слова: Организационная структура, организационная интеграция, организаций нное развитие.
Organizational structure integration of corporate mergers and acquisitions. The integration of organizational structure is the primary task of the organizational integration of the M & A enterprise, that is, in accordance with the strategic requirements of the post-M & A enterprise, redesigning and constructing a complete set of institutional framework and systems that can effectively coordinate the human, financial, material, supply, production, sales and other links of the enterprise norm, it is
a static level of integration, and it is also an organizational integration at the surface level [1]. The following principles should be followed in the reconstruction of the organizational structure of an M & A enterprise:
First, according to the development strategy of the enterprise, the type and characteristics of mergers and acquisitions, the problem of centralization and decentralization in management must be solved, and the appropriate management level and corresponding control scope , that is, the management range- must be designed.
There are two main modes of management level selection: one is a flat organization structure with fewer management levels and a relatively broad control range; the other is a towering organization structure with more management levels and a relatively narrow control range . The establishment of the management level after mergers and acquisitions is determined by multiple factors such as the principle of management scope, corporate development strategy, and corporate management methods and levels. Among them, corporate strategy and the internal environment in which the enterprise is located are particularly important. For example, for a manufacturing company with a single product and a stable market, the strategic goal of its merger and acquisition is to reduce production costs and improve labor productivity and market price competitiveness through the realization of economies of scale. Towering and multi-level organizational structure types can make each organizational level with a fine division of labor and high professionalism, and managers can easily implement effective control of factor resources and have higher management and production efficiency. However, some enterprises are large in scale, the external market environment is unpredictable, the decision-making workload is large, and the timeliness requirements are strong. Therefore, it is necessary to decentralize decision-making and simplify the decision-making process. Therefore, a flat organizational structure should be selected.
Second, after setting the management level, it is necessary to divide the departments at each level and determine the work tasks [3].
After the merger and acquisition of enterprises, it is required to re-establish the departments according to the development strategy, cancel the departments that have not adapted, merge or dissolve some departments, and reorganize the new departments. The division of departments can include six models: 1. Divided by functional departments; 2. Divided by operating hours; 3. Divided by products provided to the society; 4. Divided by regions or geographies; 5. Divided by service objects. When the enterprise integrates its organizational structure, it does not have to be confined to a single model, but it can be a mixture of multiple models, which reflects the different tasks of high, medium and basic management.
Third, based on different types of mergers and acquisitions, rationally determine the form of enterprise organizational structure integration.
According to the market relationship between enterprises before mergers and acquisitions, mergers and acquisitions can be divided into three types: horizontal mergers and acquisitions horizontal mergers and acquisitions-vertical mergers and acquisitions vertical mergers and acquisitions-and hybrid mergers and acquisitions. Different mergers and acquisitions have different requirements for the specific form of corporate organizational structure integration.
Horizontal mergers and acquisitions. Because two or more parties of horizontal mergers and acquisitions originally belong to the same industry and produce similar products, they have similarities in the structure and layout of enterprise production organization, technical organization, and marketing organization
Vertical mergers and acquisitions. There is a cooperative relationship in the production, supply, processing, and sales of raw materials between the two or more parties of the merger and acquisition enterprise, which is an upstream and downstream integration process. The implementation of vertical mergers and acquisitions by companies involves the strategic intention of controlling the market or raw materials. After the mergers and acquisitions, the two parties must independently produce and cooperate under a unified strategic plan, so the organizational integration after mergers and acquisitions is more complicated. On the one hand, it is necessary to recognize the independent interests of the two sides of the merger and acquisition, and by setting up a quasi-business unit, that is, an artificial internal profit center that is decentralized, and the two parties sell or purchase intermediate products according to the simulated market price mechanism; on the other hand, they cannot give up the necessary centralized power. In order to achieve the strategic goals of the enterprise, the two parties to the merger and acquisition shall be highly coordinated and closely coordinated to play a function of organizing instead of marketization and reducing transaction costs under the coordination and management of the general manager [2].
Mixed mergers and acquisitions. The two or more parties to the merger are enterprises that are not related to the industry. Usually, when an enterprise in one industry tries to enter another industry with a higher profit rate, it is often associated with the diversification strategy of the enterprise. The goal of mergers and acquisitions is mainly to diversify risks. And make a profit. The organizational integration after mergers and acquisitions should revolve around the above goals. The merger and acquisition enterprise can be regarded as a complete profit center of the company. Relatively independent development strategic goals and organizational frameworks can be formulated. An organizational structure with a division system or a super division system can be established. If there is a certain correlation between the two parties in the product, technology, and market, some processes can also be tried to take advantage of the benefits of professional division of labor and scale advantages. On the contrary, the status of independent profiters of both parties should be maintained more, and the head office does not directly intervene production, but it can have decision-making power in terms of final profit distribution and group strategic development, and the M & A enterprise is obliged to implement the strategic goals.
Organization and management integration of corporate mergers and acquisitions. After the merger and acquisition, not only must the organizational structure be adjusted and restructured in the surface sense, but more importantly, the new organization can effectively play the role of allocating, directing and coordinating the various resources of the enterprise to serve the new strategy of the enterprise and implement it [4]. The necessary organizational management integration to achieve the integration and effective operation of the newly adjusted organizational structure is a deep requirement for the organizational integration of the M & A enterprise.
From the perspective of organizational operation, enterprise management includes two aspects of vertical control and horizontal coordination. Vertical control refers to the formation of a top-down relationship between obedience and obedience, management, and management between the strategic, management, and executive layers: horizontal coordination refers to the information and behavior between different departments at the same organizational level coordinate and cooperate. After mergers and acquisitions, enterprises are faced with the important task of reintegrating and determining their vertical control systems and horizontal coordination systems.
In general, integrating longitudinal control systems is relatively easy. Because no matter what form of mergers and acquisitions an enterprise takes, when building a new corporate organizational
framework and system, a complete central power system should be defined, and the absoluteness of organizational authority and obedience should be emphasized between different organizational levels. This is the prerequisite for successful mergers and acquisitions. It is also the basis for establishing horizontal coordination in the next step. After the merger and acquisition, the company can formulate a detailed organizational division and management system, conduct necessary post training and strict reward and punishment disciplines for employees, and build a vertical organizational transmission channel to facilitate smooth and convenient information exchange and management coordination between upper and lower levels.
On the contrary, it is more difficult for the merger and acquisition enterprise to integrate the horizontal coordination system, because on the one hand, the existing horizontal communication system will not be applicable to enterprises or departments under different merger and acquisition forms; on the other hand, even mergers formed by similar organizations , but also the information problems caused by the increase in the cost of information exchange brought about by the expansion of the size of the organization: Increased conflicts of interest between departments and employees. The culture and values of short-term integration of employees' ideological consciousness caused by the difficult integration of values and short-term unfavorable factors such as conflicts have made horizontal organizational coordination more difficult after mergers and acquisitions.
Therefore, the integrated horizontal coordination system should reasonably select the appropriate coordination and integration mechanism according to different merger and acquisition forms.
References
1. SCHUMPETER J A. The theory of economic development. Cambridge, MA:Harvard University Press, 1934.
2. Nicholas Foss. The Omnipotent Enterprise. The Theory of Enterprise Capability. Dongbei University of Finance and Economics press, 1998, p143.
3. JANSENJJP, TEMPELAARMP, VANDENBOSCHF A J, VOLBERDA H W. Structural differentiation and ambidexterity: the mediating role of integration mechanisms. Organization Science, 2009, 20(4): p797-811.
4. Mingxia Liu, Dynamic Analysis of Corporate Organizational Conflict Behaviors, Foreign Economy and Management, 2001.
© Yang Linlin, 2020
