Dec 03 2010
Changes to Organizational structure
In order to facilitate the development of the company and its continuous growth, the credit Management Services company, Intrum Justitia, has decided to create 3 geographical regions. The new organization consists of these regions: Northern, Central, and Western Europe. The original region CEE (Central and Eastern Europe) will be dissolved and country operations of Czech Republic, Slovakia and Hungary will be included in the new region Central Europe. Also, Region Southern Europe, region Belgium & Netherlands and region UK & Ireland will be merged into Region Western Europe. According to Lars Wollung, the company’s President and CEO, “by creating fewer and larger regions we will be able to launch new services faster and benefit from the economies of scale gained across the entire Intrum Justitia Group.”
Commonly, divisional structure is based upon region, product, and function. In this case, reorganizing the company’s regional structure allows for greater efficiency and productivity. Thus, in order for Intrum to expand, structural changes are necessary, allowing them to be more responsive to local cultural differences and consumer needs. This corresponds to the spans of control. As Intrum expands, managers may need to pass on to others some of their roles and responsibilities.