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solution of a problem can be designed by everyone. Although the combination of specialization and everyone being a problem solver may cause conflicts within the organization, Toyota has developed some approaches to deal with these communication bottlenecks.

All in all, not only Fast Mortgage, but also some other firms in the 21st century, have raised high awareness of reorganization behaviours, as well as the great emphasis on people development, quality and cost of production.

2. Challenges and Benefits of the Reformed Organizational Structure 改革组织结构的挑战和机遇

2.1 Challenges

Undeniably, strong management support is crucial for a company. Especially, if the power is decentralised and been controlled by a large number of senior managers, some potential problems may emerge. “Decentralization” can be described as one of the organizational decision making structures for separating a business into divisions and delegating responsibility to unit managers. Moreover, divisions are structured around common functions, products, customers, or regions under this kind of organization form. In this case, Mike reformed the organizational structure toward a decentralized system may suffer from the following two main potential problems:

One of the negative impacts of decentralization is the inefficiency in communication. Considering the decentralized structure, chief managers of Fast Mortgage were high in power distance over the entire process of business operation. However, as the number of business projects increased, the number of employees also increased; hence the degree of specialization in diverse divisions was narrowed. All in all, by adopting this type of organizational structure, the coordination tasks within this company had become more complicated for those managers. It seems that strong management support is crucial for a company as to achieve effective outcomes including the guarantee for properly utilizing various resources, as well as producing strategic decisions.

Another challenge for decentralized structure is linked to the political and administrative manifestations of different departments within the organization. They may be poorly defined and the resources cannot be clearly allocated and not back their functions. Among various functional departments, there may be a tendency to have duplication of activities which can be costly and inefficiently. In other words, different departments of Fast Mortgage may act in diverse ways, perceive in various expectations and emphasize on own functions that may lead to costly duplication of staff functions at corporate and business-unit levels, thus raising administrative overhead costs

Apart from the above, some other potential problems of those changes should not be neglected, such as decisions may meet objectives of the division at the expense of organizational goals if Mike delegated more power to different departments, the company will fail to develop perspective employees or managers for transferring its core organizational culture values, there is a lack of coordination among subunits, new decision makers may misunderstand or even disagree with the organizational strategy as well as loss of some economies of scale.

2.2 Benefits
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