organizational Structures

Topics: Daimler AG, Truck, Mercedes-Benz Pages: 5 (1092 words) Published: September 2, 2014

Organizational Structure
March 31st, 2014
James Malm

Organizational Structure
Daimler Truck is the world’s largest heavy-duty truck manufacturer in the world. The vast reach of the Daimler truck organization encompasses almost every country in the world. Daimler distributes a total of over 100 individual vehicle models in the product categories cars, vans, trucks and buses in around 200 countries worldwide. The brands represented by Daimler include Mercedes Benz, Mitsubishi Fuso, Western Star, Orion bus, Thomas Built Bus, Detroit Diesel, and Freightliner. Daimler Trucks North America (DTNA) is a member of the Daimler group and functions as a separate entity from Daimler AG. This is mainly due to the desire to separate the automotive group from the truck group and allow each organization to operate independent from each other. The legacy of DTNA with Daimler traces back to 1981, when Daimler-Benz of Stuttgart, Germany acquired Freightliner Corporation. Access to the technological and financial strength of Daimler-Benz helped propel Freightliner to leadership of the North American heavy-duty market. Daimler Trucks North America remains integral to the success of Daimler's worldwide commercial vehicle strategy. Daimler Trucks North America brands serve the key NAFTA truck market, one of the largest truck markets in the world, and are sold in over 35 countries around the world. Daimler Trucks North America accounts for a significant portion of Daimler's heavy- and medium-duty vehicle unit sales and revenues. Alongside Mercedes-Benz trucks, Setra Buses and Orion Buses, Daimler Trucks North America brands help form the foundation of Daimler's global commercial vehicle leadership. The Daimler organization including DTNA functions under a hybrid organizational structure that includes both vertical and horizontal structures. The Daimler group is lead by a Board of Directors and Chief Executive Officer. Based in Stuttgart, Germany they manage the worldwide operations. The vertical hierarchy level governs the Daimler Company from the CEO to a Vice President in charge of truck operations. The Vice president then governs the DTNA organization down to the North America CEO. From this management level forward the DTNA organization transitions to a horizontal structure. The horizontal structure functions as a divisional organization. The diversified products, customers, and geographical regions serviced by DTNA have lead to the need to operate under a divisional organization structure. The products produced by DTNA are vastly different from each other and require individual expertise to be successful in each divisions operation. The products diversity range from an engine manufacture (Detroit Diesel), to Motor Homes Freightliner Custom Chassis), to heavy duty trucks (Freightliner/Western Star). Daimler Trucks North America includes 14,000 employees, five business unit headquarters, 14 manufacturing locations, and eight parts distribution headquarters. Every organizational structure is distinctive in various stages or departments. The goal is a seamless coordination between managers and employees at each organization to achieve the company goals. These organizational structures are ones that stand in place so that completed tasks and them being reported to management is consistent and systematic in order to ensure decision making directly pertains to the specific needs of each division. A divisional organization is a company that continues to grow and become increasingly diversified (Bateman & Snell, 2013). The divisional organization utilized by Daimler Trucks North America can be compared to other horizontal structures that may not be suited for this type of operation. Independent of whether DTNA chooses to focus on products, customers, or geographical locations the divisional organizational structure will allow a variety of functions to be conducted and not necessarily require other divisions input into the...

References: Bateman, T., & Snell, S. (2013). Management: leading & collaborating in a competitive world (10th ed.). New York, New York: McGraw-Hill/Irwin.
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