Running head: ORGANIZATIONAL STRUCTURES

Organizational Structures Justin Randall MGT230 January 17, 2013 Lorrie Madden

ORGANIZATIONAL STRUCTURES

Organizational Structures Daimler Truck is considered the worlds 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 organization from Daimler AG. This is chiefly because of the wish to detach the automotive category from the truck category and let each company to work separate from each other.

The history of DTNA with Daimler goes as far back as 1981, when Freightliner Corporation was purchased by Daimler-Benz of Stuttgart, Germany. Accesses to the technical and fiscal power of Daimler-Benz assisted propel Freightliner to leadership of the United States heavy-duty sector. Daimler Trucks North America stays attached to the achievement of Daimler's international commercial vehicle strategy. Daimler Trucks North America models support the crucial NAFTA truck industry, one of the biggest truck markets all over the world, and are sold in more than 35 nations across the world. Daimler Trucks North America is accountable for a substantial part of Daimler's heavy- and medium-duty vehicle unit sales as well as income. Along with Mercedes-Benz trucks, Setra Buses as well as Orion Buses, Daimler Trucks North America models assist build the basis of Daimler's international commercial automobile leadership.

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The Daimler Company which includes DTNA operations under a mix of organizational structure includes both vertical as well as horizontal systems. 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

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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 customers requirements. The goal while structuring an organization like a divisional company is to supply goods the clients desires and outstanding service to those clients diversified (Bateman & Snell, 2009). An illustration of the benefits of a divisional organizational system may be found by evaluating 2 departments in the DTNA family. One department (Freightliner Custom Chassis aka FCCC) manufactures items for the Motor Home and School Bus sector), another department (Detroit Diesel) manufactures top quality engines. Every company has got its own client base as well as strategic business plan. It would be impractical and extremely unproductive to blend both departments into one operation and maintain the achievement and client dedication enjoyed now. The main objective is towards profit earnings and the expansion of the company. By having product experts at every department the mangers can concentrate on understanding market tendencies, customer needs, and be better qualified with the development of strategic and tactical scheduling.

Companies may start with a kind of operation only to discover in a period of time as the company starts to expand and customer requirements modify that there is a requirement to structure a modification. A thriving organization will have to continuously assess the kind of

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organizational structure that is set up and be adaptable to make modifications in order to keep or enhance revenue. One more organizational type is the functional company. Here is where the CEO or President is on the higher level of control and after that followed by subdivisions for example buying, selling, finance, human resources, engineering, production, and so on. A practical company will have a central buying division, in which a divisional company has its own buying division. Additionally a functional company has companywide divisions in areas for example engineering, selling, and so on. This is in comparison to a divisional company which will have people who are experts for each of these operations located at every department. The matrix company is a mix structure of both a practical as well as divisional forms overlap. The matrix company includes 2 different administrators consisting of a divisional and functional administrator. This kind of company has both disadvantages and advantages. The advantages incorporate important sources are used more effectively because they are shared across many products and/or projects. There are also drawbacks including misunderstanding which may come up due to workers don't have a single administrator to report back to. Each one of the different kinds of company structures has their strong and weak points. The secret is to have informed administration set up which knows each company form and after that execute the plan which will offer the perfect opportunity for achievement.