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Organizational Structure Paper - Essay Example

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Organizational Structure Name University The organizational structure in an organization is the basic structural foundation that dictates how tasks are distributed, how the chain of command functions, how responsibilities are divided and how the information is handled in general…
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Download file to see previous pages The organization under observance in this essay is Toyota. Toyota uses a matrix structure which is, arguably, an amalgamation of two models; traditional design and horizontal structure. To understand the matrix structure, let us first look into the traditional model and the horizontal model. This ways, the essay will cover multiple styles of organizational structure. Traditional model, also called functional design, is the conventional way of organizational structure. It adopts a centralized manner of task allocation and responsibility-sharing. Generally, traditional model uses a bureaucratic style, and lines of authority are well-defined (Organizational Structure, n.d.). When it comes to considering the customers, the traditional model fails to acknowledge customer feedback and opinions since the structure is strictly function-oriented. On the other hand, a horizontal structure has a flat layout. Also called a flat structure, functions in horizontal structure are spread out and there is less authoritative manner to it, while giving room to a greater span of control to employees. Unlike the traditional model, a decentralized approach is employed in a flat structure, whereby, there is increased communication and teamwork. There is room for customer feedback due to the emphasis on high levels of communication. In the last two decades, companies have shown a trend towards shifting to a horizontal structure since it encourages communication and feedback. The traditional model is rather a primitive style of organizational chart; companies in the 20th century were more bent towards the functional approach. However, towards the end of the century, the new-age style of designing the organizational chart was shifting towards being a flatter structure. Subsequently, modern organizations adopted an amalgamation of the primitive models, hence, the matrix model, which is partially centralized and partially decentralized in nature. The illustration below shows how a matrix-structured organizational chart would look like. At Toyota, the employees find themselves in an inter-connected group of personnel who know their functions while keeping communication at an optimum level. ‘The Toyota organization structure is designed to support teamwork. Toyota followed the power of coordinated team structures’ (Toyota, 2011). The chart below, clearly, shows how the functions are linked with each other, following a top-down design along with a flat structure. One common advantage of using a matrix-structure is that it allows for expertise and special staff to be efficiently employed, rather than undesired duplication of functions and hence, wastage of expertise. One of the ways that influence the organizational structure is to consider the vital organizational functions. The functions include human resource, finance, marketing, sales etc. During the design phase of the flow chart, the company must analyze the company goals and vision because that will provide the appropriate framework for the organization. The functions at Toyota include marketing, finance, operations, R & D etc. to save time, and allow processes to be completed in quick fashion, there needs to be fast communication along with a stringent quality control framework. The higher authority at Toyota needs to be involved in the functions while also allowing for middle managers to ...Download file to see next pagesRead More
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