In relation to Abhilasha Gnawali’s blog post about organizational structure, I believe there is much functionality to the differing variations between the two main types of organizational structures as pictured below: 

In an attempt to increase profit, electronics and engineering company, Siemens, has been reported to “revamping” its organizational structure, so as to “make the company more agile and competitive”. Siemens aims to take its vertically structure corporation and transform it to a flatter, more decentralized model where a whole layer of its cluster system is eliminated to “make Siemens more streamlined and closer to [their] markets”.

Based on what we have learnt in class, this would mean more direct communication between the executives of the company and their workers where there is now less difficulty in information flow. While to a certain extent this strategy would be able to help the management team of Siemens, I believe this move is more resultant of the pressure on the new CEO to meet profit targets. After all, the company remains to be a multi-national corporation where its operations in its various regions are difficult to monitor without a structured hierarchical approach within the corporation, making it impossible for the company to fully integrate itself to the flat, unstructured model of the two organizational structures.

Article: http://online.wsj.com/news/articles/SB10001424052702304410204579141330057795494