Organizational Structure - Essay Example

As mentioned in the case, Nissan Company is facing certain problems and due to these problems the productivity and efficiency is affected to a great extent. The company owner aims to make the company improve its operational efficiency and produce better results. Organizational structure as mentioned earlier is of three kinds centralized, decentralized and departmentalized structure (Clark & Fujimoto, 1991). These structures can be adopted in order to make a company powerful and successful one.

Centralized structure is a structure with the help of which decisions can be taken as a whole. People will work together by sharing their thoughts, feelings, ideas and will generate better results. Whereas decentralized structure is a structure with the help of which problems can be resolved easily if there are any. And departmentalized structure is a structure with the help of which one can extend the department line in order to gain more profits in a particular market, geographic area etc. One of the well known companies, Nissan, when enters in its fiscal year 2009 tries to change its organizational structure as directed by its Chairman Carlos Tavares as mentioned in the case. . The company should introduce new and innovative ideas in order to have a joy of everyday driving (Wickens, 1987).

The company should also strategically consolidate its operations across other countries too in order to have a diverse economic zone.In addition to this, different operation committees should be established who should be responsible of making different decisions, the decisions should be performance based so that they can easily judge that what they should do in order to make their company perform better. One new and a different organizational design should be there in order to enhance the future growth of the company.

Marketing, sales and the support system should be managed more locally because they are the one who are suppose to respond to the needs of the local markets. Similarly the supply chain management should work more logically and with different set of strategies in order to keep a check that whether the company is functioning properly or not. Various holistic approaches should be taken in order to do something different so that it will be very much easy for the company to compete with other companies.

RECOMMENDATION 1The company should adopt centralized structure. Centralized structure is a structure with the help of which all the decisions are made only at the level of the firm as a whole (Dalton et al., 1970). This structure will tend to increase the decision making level of the company too and with the help of this structure the company can generate better results. This organizational structure also allows the firm to avoid all the low performing activities and also to coordinate across its all divisions.

Therefore, if there