Organizational Structure Essay

1146 words - 5 pages

Organizational Structure

MGT230

Organizational Structure

Daimler Truck is considered the world’s biggest top quality truck producer all over the
world. The huge stretch of the Daimler truck company includes nearly every country
across the world. Daimler distributes a total of more than 100 individual vehicle designs
in the product groups’ cars, vans, trucks as well as buses in about 200 countries
throughout the world. The models represented by Daimler incorporate Mercedes Benz,
Mitsubishi Fuso, Western Star, Orion bus, Thomas Built Bus, Detroit Diesel, as well as
Freightliner. Daimler Trucks North America (DTNA) is actually an associate the Daimler
group and works as a different ...view middle of the document...

The Daimler group
is led by a Board of Directors as well as Chief Executive Officer. Located in Stuttgart,
Germany they control the international operations. The vertical hierarchy level controls
the Daimler organization from the CEO to a V. P. responsible for truck operations. The
Vice president after that controls the DTNA company right down to the North America
CEO. From this administration stage send the DTNA company transitions to a horizontal
system. The horizontal system functions like a divisional company. The varied goods,
clients, as well as geographical areas served by DTNA have resulted in the requirement
to work under a divisional company system. The goods manufactured by DTNA are
significantly different from each other and need individual knowledge to achieve
success in each divisions operation. The goods variety vary from an engine production
(Detroit Diesel), to Motor Homes Freightliner Custom Chassis), to top quality trucks
(Freightliner/Western Star). Daimler Trucks North America incorporates 14,000 workers,
5 business unit head offices, 14 production areas, and 8 parts distribution head offices.
Each organizational system is unique in different phases or divisions. The objective is a
smooth coordination between administrators and workers at every company to attain
the company objectives. These organizational systems remain in place therefore the
finishing jobs and reporting to administration is systematic to guarantee the correct
decisions are being made which directly relates to the particular requirements of each
department. A divisional company is a company which keeps growing and get
progressively varied (Bateman & Snell, 2009).

The divisional company used by Daimler Trucks North America may be compared with
other horizontal systems which may not be suited to this kind of function. Independent
of whether DTNA decides to concentrate on goods, clients, or geographic places the
divisional organizational system will let a number of operations to be carried out and not
always need other departments input into the decision as well as managerial processes.
Indeed companies are developed in order that challenging tasks are capable of being
separated and essential work finished in an efficient and effective way without needing
upper managements advice. Managing an organization in a divisional way helps higher
administration in the capability to easily know the output and earnings each business
section produces. An organizational system is prepared to enhance the capability to
fulfill the customer’s requirements. The goal while structuring an organization like a
divisional company is to supply goods the clients’ desires and outstanding service to ...

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