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A compare and contrast strategy reveals the exact advantages and disadvantages and how it affects the use of technology and technology decisions in the company. General Motors is among the oldest companies of the US. It is the pioneer in the automotive industry and has been primarily associated with the decentralized organizational structure. Most of the companies do not stick with only one organizational structure throughout their lifetimes. According to marketing trends they shift and adapt to the model that serves their interests the best.
Sometimes the model that later comes to identify them emerges over time as a business faces different challenges (Cameron and Quinn, 2011). General Motors is believed to have a decentralized organizational structure, but it is not strictly true. They have gone through many transitional phases. But for the sake of argument, this paper will holistically consider General Motors to be a decentralized company. The organizational structure of General Motors is a common topic of discussion for businesses.
It has been copied by most large corporations. When the company started its operations, it was a novelty. In very few words, the structure was a complete breakdown of cost per unit (Bell, 1999). The goal was to exercise control of operating divisions through strict budgets. The decentralized structure of General Motors is centered in the marketing system. Because revolutionizing the centralized structure was due to a lack of production efficiency, it forced them to reconsider their structural choice.
A centralized approach promises the scale and scope, and the economies for a company. When a business needs to become more efficient centralization might not be the suitable approach. The centralized organizational structure makes the company slower in its response to diverse global markets. The structure also demands better coordination and information sharing, and if these tasks are not done well, these can significantly
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