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Dimensions of organisation structure style: harvard - Research Paper Example

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Toyota: Dimensions of Organizational Structure 1.0 Introduction Throughout the history, Toyota Corporation has been demonstrating its capacity to make use forward thinking (Frost, 2011). To illustrate, Toyota has not only established a top competitor image in North America but also has become the Global automotive in the international market by utilizing the strategies formulated from all its experiences throughout the years since 1937…
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Download file to see previous pages Toyota depicts a positive corporate face in the society while the company itself claims to be ethical in the business sense. 2.0 Organizational Structure As Bauer and Erdogan (n.d.) state, the organizational structure can be used as a powerful tool for influencing the employees’ actions in the same way as the team level factors can be used to develop work approach and performance. The organizational structure of the company shows how the performances of the individuals and teams within the firm are coordinated. For the purpose of achieving the organizational goals and objectives, the work requirements of the individual are to be organized and supervised. The structure of the organization serves as a tool in maintaining coordination, defining channels, and describing how well the independent actions of individuals can be linked together. Dimensions According to Paugh et al (1968), the primary dimensions of organizational structure are defined and operationalized as (1) speculation, (2) standardization, (3) formalization, (4) centralization, (5) configuration. These dimensions help in constructing the profile characteristics of the organizational structure of the firm and enable the comparison of the structure with that of the competing organizations. These key dimensions structure the activities, control the concentration of authority, and maintain the workflow and size of supportive component. In the same way, firms use terms, formats, and concepts while constructing the organizational structure. Some of the key terms (Montana & Charnov, 1993) used in the organizational structure are; Departmentalization: - The activity of grouping the similar functions into controllable segments for the purpose of efficient and effective accomplishment of the objectives Delegation: - It is the duty that a manager performs to bestow his subordinates with responsibility and authority and to create accountability on the workers for results. Centralization: - It is the situation where a limited amount of authority is delegated within the organization. Scalar Principle: - It is the chain of authority within the organization which flows down from the command of the top level to the lowest level. Decentralization: - This is the situation where much of the authority is being delegated to the lower levels in the organization. Contingency approach: - this is an approach to the organizational structure, stating that the structure is depended on the environment, technology, and many other dynamic forces. (Source: Montana & Charnov, 1993). The organizational structure of a company contributes to the management in speeding up the innovation procedures in the market where fast innovations are on their pace. The Toyota Motors have constructed an effective and efficient organizational structure which facilitates their innovations faster. The diagram of the Toyota Manufacturing Organizational Structure is illustrated below. The Organizational Structure - Toyota (Source: TOYOTA) 3.0 Organizational Structure Design The organization maintains a cross-functional team which focuses on a project or product and formulates clear goals and objectives for the new planning program, making the team accountable for the results. The Toyota has never paid attention to the compromise ...Download file to see next pagesRead More
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