The Mercedes – Benz Company began with the merger of Daimler Motor Company and Benz & Company in 1926. Since the merger, Mercedes – Benz has created and sustained a reputation for innovation and excellence by producing high-quality automobiles. An analysis of Mercedes – Benz would not be complete without an examination of the DaimlerChrysler Automotive Group, as the two industry leaders merged in 1998. The Mercedes – Benz Company is now owned and operated as part of the DaimlerChrysler Automotive Group. Throughout the paper, the guiding principles of DaimlerChrysler will be referred to, as their management decisions directly dictate those of their subsidiary, Mercedes – ...view middle of the document...
This type of relationship will create higher job satisfaction, performance, and organizational commitment because the workers believe that they are being listened to and have a role besides making cars (Colquitt, 136)
Since 2006, DiamlerChrysler has implemented another management model that is:
…Designed to enhance competitiveness and promote further profitable growth…integrate the company’s functions, focus the operations within DaimlerChrysler on core processes, and encourage internal collaboration…. reduce redundancies and remove management layers (Daimler.com).
The multifaceted endeavor by DaimlerChrysler is designed to make the company’s organizational structure more flexible, thus enabling it to increase efficiency and effectiveness. The overarching goal of increasing efficiency was to remove barriers that were costing the company 1.5 billion Euros annually (Daimler.com). To make this goal a reality, management began by unifying divisions such as HR and Finance so that each would report to a designated manager. By eliminating reporting confusion, the company was able to decrease redundancies, which leads to greater efficiency (inboundlogistics.com).
An additional management activity within the organization is shifting administration style to reflect a collaboration and unity between the Daimler and Chrysler employees (diamler.com). With the recent merger of the two companies, some cultural and teamwork problems arose. To correct this difficulty, the company sought to standardize important processes through creating “project houses” (diamler.com). The goal of the “project houses” was to have employees from diverse divisions come together to determine innovative solutions that would benefit the company as a whole (diamler.com). The “project houses” also assisted by reducing the time-to-market of new technologies by keeping the researchers focused on customer desires (diamler.com).
The goal of creating a single strong culture through a single company has many advantages, but also some disadvantages (Colquitt, 528). It will allow DiamlerChrysler to differentiate itself from its competitors and the employees to identify themselves within the company. A disadvantage is that it makes merging difficult with other companies, something they found out when Daimler merged with Chrysler (Colquitt, 529). According to Colquitt it is very good for any company to have a strong culture so that it will bond its employees together and set a standard for all new employees (Colquitt, 531).
PART B: ORGANIZATION STRUCTURE
DaimlerChrysler is a large, multinational company and with it’s immense size comes the necessity to maintain a structure that fosters efficiency. DaimlerChrysler has a “Product and Functional Management Structure” (Colquitt, 501), which creates an organizational breakdown by different functional structures, such as HR or Finance (ruhr-uni-bochum.de). The breakdown continues by differentiating between each of the parent company’s brands....