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Organizational Structure - Essay Example

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Organizational Structure Contents Contents 2 Organization Structure of Ford 3 Analysis of Ford’s Organization Structure 3 Influence of Organizational Functions in Influencing and Determining the Organization Structure 4 Marketing Functions in Ford 4 Financial Functions in Ford 5 Human Resources Functions in Ford 5 Operational Functions in Ford 5 Effect of Organizational Design in Determining the Organization Structure 6 Referencing 7 Organization Structure of Ford The American car manufacturing company is found to operate previously based on a decentralized mode…
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Organizational Structure Essay
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Download file to see previous pages However of late during the 1990s the company went for a restructuring of its organization structure. The organization structures of the current era thus operates based on matrix networks which are governed by functional and product heads like Vice Presidents. The management team of the company felt that increased dependence on a decentralized organizational structure failed to make optimal utilization of the existing resource base. Thus the company again shifted back to a centralized mode in which specific posts were created for different functions which would be headed by functional heads. These functional heads would manage the global operations of the company through the effective collaboration of regional heads. The company management found that shifting back to the centralized organizational management structure helped in solving many issues pertaining to authority and delegation of responsibilities. However the company management also worked in the encouragement of extensive teamwork in the concern. Through effective teamwork the human resources within the company collaborated with each other in a cross-functional manner. This cross-functional relationship helped the people to develop on their skills and productive capacities (Hill and Jones, 2009, p.454). Analysis of Ford’s Organization Structure The analysis of the organization structure of Ford can be conducted based on comparison and contrasting such with other two types of organization structures. Another such structure with which the organization structure of Ford can be compared is the Line or Bureaucratic Structure. Organizations operating based on bureaucratic or line structures operate based on an authoritative relationship in which orders tend to flow from top to bottom. In such structures there is very little scope for flexibility. The human resources in such organization are required to only implement the decisions taken by the upper authority with little chances of innovating on such processes or methods. This fact tends to create large amount of morbidity in the enterprise and thereby disturbs productivity of the concern. In regards to the above discussion it is found that the organization structure of Ford is more dynamic and flexible. With the creation of separate functional teams the company has helped in optimizing the use of the resource base in producing products which would meet the enhanced needs of the market. Again some organizations operate based on Ad Hoc structures which are an extension of the bureaucratic or line structures. These structures however depict little flexibility in comparison to the bureaucratic structures. However these structures are mainly created by the company in regards to needs for completion of some specific projects and hence gets dissolved on completion of the same. Thus again it is found that the organization structure of Ford suits the best for it makes permanent arrangements for two way flow of communications making the structure flexible to adapt to changing needs (Marquis and Houston, 2008, p.274). Influence of Organizational Functions in Influencing and Determining the Organization Stru ...Download file to see next pagesRead More
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