Coloplast Organizational Structure Essay

Coloplast went from a take merged governing body to a functional bodily structured judicature. In the merchandise structure the cerebrate was on the products wish were split up into 3 product divisions. In the functional structure the comp whatsoever focus on specialization of tasks. Before the production governing The production organization structure as well as c individually(prenominal)ed Division Structure is divided into 3 production division skin, wound care and continence care, and ostomy care. Each division beyond having its department for research, development, sales and marketing, contains all the necessary resources and functions.By applying the production organization, a comp both gains the followings benefits A structure where its easy to define the objectives and word of honor work assignments can simply be coordinated, within apiece division. other Benefit Coloplast can gain on this structure is the flexibility among workers. Workers from 1 department ca n be put on assignments in other department within the same division, if needed. Thiss made possible by the fact that most of the workers are non specialist in any specific field. Should any problem occur in the division structure the causes are readily detected and solved.This type of structure allows local leading to make small locale adjustments to meet the altercates in thither division. and this trunk holds its own weaknesses. It can harm communication flow in the midst of different divisions. This may take in loosing the overall focus on the objective of the organization. It may happen that each local division cook its own culture witch may not necessarily be compatible with the companys culture as a livelong. The expressage communication between divisions makes it hard for them to exchange experience and expertize.This system by nature is heavy and costly. In order for the company to stick out all the necessary resources and functions within each division, they can t afford the dress hat expertize on every field. After the functional organization The new organisational structure focuses more on functions. Unlike the previews structure that focused on the product. This new structure pulls functions out of the different divisions and put them in change units, each specialized in respectively globosee Maketing, R and D and Global Operations.As a consequence, the former divisions are reduced to production units and subsidiaries that receives operating instructions from the top. To as trusted communication between top and bottom, Coloplast place Commercial probity to a higher place the whole new structure. With the three functional divisions, Coloplast makes legitimate that there a clear purpose that goes all the way through the whole company, when it comes to their global marketing, innovation and how new products should be developed. As a result Coloplast becomes a unified company with no duplications of tasks.The greatest advantages of thi s functional alter structure is its lightness and affectivity. It gives the opportunity to hire highly specialized staff. As Coloplast CEO puts it The subsidiaries have a huge, further simple, responsibility they ? ll have to wander like the dickens meaning that Coloplast now can headhunt exact talents for each function. The workforce those talents brings is not lone some(prenominal)(prenominal) promoting a single product but the company as a whole. Employees have the opportunity to learn from their superiors.They overly have the opportunity to work alongside colleagues who relate to their professional interests and abilities, and then making for a more productive and enjoyable environment. By move the production responsibility from all division to the Global Operation in cheap-labor countries, its possible for Coloplast to reach the point of an Economical of scale. Like any other organization structure, the functional organization has weaknesses. Because of the decision-maki ng within the functional whole works from top to bottom, its a constant challenge to make sure that the organizations objectives are integrated at the bottom.Another disadvantage is that units may have limited flexibility in problem solving, making changes or responding quickly to customer demands and needs, since the final decision-making authority rest with the top level of focal point. So how does Coloplast solve these challenges? Commercial righteousness/Business Excellence For solving the challenge of implementation of the organizations objectives and assurance of a two-way communication, Coloplast places Commercial Excellence above the entire new structure, which acts like the strong arm, thatll prepare budgets and make sure that objective are achieved.Commercial Excellence or Business Excellence is the systematic use of quality management principles and tools in business management with the goal of identifying improvement opportunities, area of strength and ideas for futur e organisational development. Its a support function thatll help ensure best recital so that the organization can avoid those complications. Conclusion This new organizational structure is a natural step for the entire group, not only does it outsource to cheaper-labor countries but it has also given Coloplast improved profitability and an essential growth of 7%.The sustained competitiveness Coloplast has gained is due to the change of organization structure where they went from a production organization to a functional organization. With the geological fault came the opportunity of standardization of tasks, this leads to efficiency and expertise in the related fields. This was something they lacked in the production organization. By implementing the Business Excellence, Coloplast shows that its aware of the weaknesses of the new organization design and intent to avoid them.Lars Rasmussen, Coloplast CEO, emphasizes how important its that this supporting system doesnt end up like a police maneuver, charge subsidiaries in an iron grip. Instead it shall ensure best practice and site such high standards, that where that is difficulty, itll become natural to draw on supply. Its all well-nigh motivation, contributing to people and relying on each other. This serves as a great factor for self-actualization for the individual employee witch is not only contributing to the fulfillment of personal potential but also to the work-environment.The new organization has great potential they have cut production time by half, they went from 13 factories to 10, constantly stimulating innovation by supporting Coloplast Incubator. Coloplast current strategy placed a great contend of responsibility on the shoulders of their employees, as well as implementation of some standard guidelines and the right motivation. There are no doubt about the new structure is more complex than the previews one. Annex