Organizational Structure Term Paper Example | Topics and Well Written Essays - 1250 words

Organizational Structure - margin Paper ExampleTherefore, top warinesss give particular importance to their organisational complex body parts while planning and implementing business organization strategies. This paper pass on analyze the organizational structure of Toyota Motor Corporation (TMC) with specific attention minded(p) to its organizational functions and organizational design. Toyota Organizational Structure Toyota has a unique organizational structure that has assisted the family to dominate the automobile industry throughout its corporate life. As Borowski (2010) points out, the General Meeting of Shareholders is the governing torso of Toyota and the shareholders have a voting right in the General Meeting if they hold a stripped-down amount of shares. Toyotas executive body is its Board of directors consisting of 26 members. The companys Board of Directors comprises of the chairman, the guilt chairman, the president, 8 executive vice presidents, 13 senior manag ing directors, an honorary chairman, and a senior advisor. In addition, there are four committees that belong to the director board, including the Labor-Management Council, the Corporate Philanthropy Committee, the Stock Option Committee, and the Toyota Environmental Committee. The Toyota headquarters manages and coordinates 229 divisions (pp.3-4). Market analysts indicate that Toyotas organizational structure greatly assists the company to facilitate effective strategical implementation. Referring to the views of Moore (2011), long term-thinking is central to the companys organizational philosophy. The company management promotes the long-term thinking sometimes even at the expense of short-term financial gains. The author opines that this strategy has significantly benefited the organization to name potential management decisions and to enhance organizational learning (pp.141-143). Toyotas strong organizational structure back up the company to earn $16.7 billion in profits and 6% sales growth in 2009 in spite of global financial crisis 2008-09 that had severely hit the global automaking industry. Recently, the TMC has announced some noticeable qualifyings to its organizational structure. As Bloomberg (March 6, 2011) reports, appointment of outside board members is one of the major changes declared by the company. Business social unit organization is another change announced. Through this structural change, the companys automotive business will be split into four distinct units namely Lexus International, Toyota No. 1, Toyota No. 2, and Unit Center. The company believes that this change would well define operations and earning responsibility and would fasten decision making. The TMC has also announced the reorganization of percentage groups in order to improve its products and services in growing markets. While comparing the organizational structure of General Motors to that of TMC, it seems that GMs organizational structure is very weak and this issue ended up in the bankruptcy of the GM, the worlds second largest automaker. The company delivers its products and services through the seven divisions including Buick, Chevrolet, Cadillac, GMC, Opel, Holden, and Vauxhall. It is set that the companys operations are not well coordinated and there is no graceful communication mechanism to facilitate up and down information flow across various management levels. As a result of a weaker organizational structure, the GM failed to address operational flaws in a timely