Page 5: Organisational structure
When you develop a decentralised organisational structure, providing subsidiary and associated companies with considerable autonomy, you depend more than ever upon your people. The process of change led to shorter and flatter organisational structures, designed to improve the process of communication and create self-management teams. Within the organisation, this reduced the number of layers to just 5 from the Chief Executive Office to employees working on the shop floor.
The Morgan philosophy is ‘small is beautiful’. The Group comprises many small but focused business units, and, though the largest comprises 800 employees, the average size includes around 120. Within these units, individuals operate each business as if it were their own. This is sometimes called ‘entrepreneurship’, as individuals are provided with the freedom to use their ideas in order to achieve the corporate objectives of each company. The real benefit of this approach is the shared objectives of employees at all levels of management and responsibility, who work together to ensure that their part of the Group is successful.
For this approach to work Morgan has developed a trusting non-threatening open style business environment, which encourages ideas from within in order to develop business opportunities. At the same time it had to create a mechanism in which the ideas could be implemented without the need for a heavyweight corporate structure. Small business units and flatter structures made communication easier from the bottom to the top. If people felt their ideas could work they were given the opportunity to make them work and this is further evidenced by the fact that Morgan has no internal audit team.
In this reactive environment, training and employee development plays a critical role in meeting the objectives of Morgan’s five-year corporate plan - Strategy 2000. Morgan makes a huge commitment to training, with a large annual investment in developing ‘people’ skills for those with the capability and ambition to progress through the Morgan Group, to provide it with its competitive edge. Courses vary from the management of people skills to creativity and problem solving and effective project management. It is the belief from within the Group that its development has largely depended upon the skills of individuals entrusted with management, responsibility and leadership who have sought continuous improvement in a fiercely competitive global marketplace.