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7
project leaders, to carry out certain objectives. Training is vitally important here in
order to avoid conflict between the various members of the team.
During the 1980s a wave of restructuring went through industry around the
globe. This process, known as delayering hierarchical structures with layers of
middle management being removed. This development was driven by new
technology and by the need to reduce costs. The overall results were organizations
that were less bureaucratic.
The delayering process has run its course now. Among the trends that
currently influence how a company organises itself is the move towards
centralization and outsourcing. Restructuring has evolved along with a more
“customercentric” approach that can be seen to good effects in the banks. They now
categorise their customers and their complex borrowing needs into groups instead of
along rigid product lines.
Another development can be seen in larger companies, which are giving their
employees more freedom to innovate in order to maintain a competitive edge.
Ms Julia MacLauchlan, Director of Microsoft’s European Product
Development Centre in Dublin, said the leading software company had a very flat
organizational structure. “There would not be more than around seven levels
between the average software tester and Bill Gates,” she said.
Microsoft is a good example of a company that is structured long product
lines. In Ireland, where 1,000 employees work on localization of the software for all
Microsoft’s markets, the company is split up into seven business units. Each unit
controls the localization of their specific products while working closely with the
designers in Microsoft’s Seattle Headquarters.
It works, said Ms Maclauchlan, because everyone who works inn the unit is
“incredibly empowered”.
“Without a huge bureaucratic infrastructure people can react a lot more
quickly to any challenges and work towards the company’s objectives.”
project leaders, to carry out certain objectives. Training is vitally important here in order to avoid conflict between the various members of the team. During the 1980s a wave of restructuring went through industry around the globe. This process, known as delayering hierarchical structures with layers of middle management being removed. This development was driven by new technology and by the need to reduce costs. The overall results were organizations that were less bureaucratic. The delayering process has run its course now. Among the trends that currently influence how a company organises itself is the move towards centralization and outsourcing. Restructuring has evolved along with a more customercentric approach that can be seen to good effects in the banks. They now categorise their customers and their complex borrowing needs into groups instead of along rigid product lines. Another development can be seen in larger companies, which are giving their employees more freedom to innovate in order to maintain a competitive edge. Ms Julia MacLauchlan, Director of Microsofts European Product Development Centre in Dublin, said the leading software company had a very flat organizational structure. There would not be more than around seven levels between the average software tester and Bill Gates, she said. Microsoft is a good example of a company that is structured long product lines. In Ireland, where 1,000 employees work on localization of the software for all Microsofts markets, the company is split up into seven business units. Each unit controls the localization of their specific products while working closely with the designers in Microsofts Seattle Headquarters. It works, said Ms Maclauchlan, because everyone who works inn the unit is incredibly empowered. Without a huge bureaucratic infrastructure people can react a lot more quickly to any challenges and work towards the companys objectives. 7
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