Big Drive Auto Organizational Structure

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David Jone’s early involvement with sports influenced his 13 years of successful management career before joining Big Drive Auto in 1996, the company is a multistate manufacturer of cars and trucks. Big Drive Auto generated over 400 million during Jones first year with the company, since his tenor, Jones has changed the strategic direction of the company, introducing a diversified product line and competing in several different markets. They sell, the vehicles, service them, sell parts for repair, and do a significant business in motor oil, coolant, and replacement tires. Since Jones joined Big Drive Auto the company’s gross sales are 2.8 billion as of today. Jones have reviewed the matrix and multidivisional structures for his organization. An organizational structure defines how job tasks are formally divided, grouped, and coordinated. There are six key elements that managers need to address when they design their organization’s structures. These are work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. Ford demonstrated that work can be performed more efficiently if employees are allowed to specialize. Today we use the terms work specialization, or division of labor, to describe the degree to which activities in the organization are subdivided into separate jobs. The essence of work specialization is that rather than an entire job being done by one individual, it is broken down into a number of steps, with each step being completed by a separate individual. When bringing out a business innovation in any country, trudging through corporate bureaucracy can cause delays that result in a competition. This is especially true in China, one of the world’s fastest-growing economies. Successful multinational corporations operating in China are realizing that the optimal structure is decentralized with a high degree of managerial autonomy. Given that over...
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