The assignment focuses on Organizational Administrative structure. Besides, there is also a description of Manufacturing and Product Development. So, reorganize into a matrix structure of product.
Organizational Administrative structure – Manufacturing and Product Development
Description This organization a joint venture of 50:50 equity ratio between a large multinational automotive Tier 1 supplier and a large chinese state owned group of automotive companies. The firm a stand alone organization fully functional in terms of administration, manufacturing and product development, structured and its market is 100% local market, although internationalization part of the future strategy. The company also has multiple product lines. The organization a purely functional structure with each function reporting to the general manager.
Organizational Administrative structure – Manufacturing and Product Development
There only six grades between entry level and general manager, making it a flat organization. The advantage of this structure a clear division of responsibilities between departments and the functional expertise. An alternative of structure to the currently selected one a matrix organization by product and function. For Rugmanand Collinson (2012) this type of structure puts the emphasis simultaneously on the activities (functions) and the their output (product) and therefore improving the orientation to overall results as opposed to functional results. A well analyzed disadvantage of the matrix organizations is its complexity and that it often requires time invested to clarify the roles and responsibilities of each side of the matrix.
Organizational Administrative structure – Manufacturing and Product Development
From a reporting lines perspective, a functional structure also allows a very clear line of responsibility. However because of the nature of the joint venture and the governance process established in the JV agreement. Some positions like Finance director and General Manager duplicated with two people in the position (one representative of each shareholder). Which makes the decision making process very inefficient. Decision-Making Process for Organizational Change Recognizing people, structure and processes as the three key elements that build the organization design. A proposal to reorganize into a matrix structure of product / function expected to improve this. A similar situation unfortunately occurs too with suppliers and customers, where the functions assigned to interface with external stakeholders (i.e. Sales department with customers) are not able to provide cross functional information or responses.
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