March 09, 2012
Coloplast one of Denmark largest medical company faced in 2007 growth challenges and was obliged to take action in order to put the firm back on track. These challenges were solved by looking at its organizational structure. In this case Coloplast structural organization before and after the changes will be closely looked at.
Analyze Coloplast’s organization structure before and after the changes and state your opinion about the organization’s design.
Coloplast went from a production structured organization to a functional structured organization. In the production …show more content…
Employees have the opportunity to learn from their superiors. They also have the opportunity to work alongside colleagues who relate to their professional interests and abilities, thus making for a more productive and enjoyable environment. By moving the production responsibility from all division to the Global Operation in cheap-labor countries, it’s 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-making within the functional works from top to bottom, it’s 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 management. So how does Coloplast solve these challenges?
Commercial Excellence/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