Develop an 8–10 slide presentation that includes the following:

Milestone 3: Strategic Divisional Operations for Toyota Corporation

Richard K. Hairston

GM543.01

Organizational Diagnosis and Design

12/18/17

Professor

Dr. Rebecca Herman

Introduction

The Toyota Strategic grouping provides an analysis to understand better the strategy employed within the company. This makes it easy for strategists to understand the industry better in which they operate in. in addition to that, it helps in the identification of any gaps or areas where a shift in the strategy could help in building rewards (Drejer, 2002). The rewards can be built through capitalizing on an opportunity in a less crowded market. Toyota Corporation can have different business segments catering to different markets. Strategic groups can be varying in an industry such that big businesses may have a much higher bargaining power than the small businesses.

Operating model

Team Divisional model

Toyota should use a team divisional design. This structure uses teams as the main element of coordinating work operations (Pearson, 2003). The Company depends entirely on the abilities, skills, employee relations, consistent services, and decisions that are made by key staff members and the management team. Besides, for the organization to attain its objectives will heavily rely on its capability to recognize, recruit, prepare, and maintain the highly qualified workforce. This process includes competing with other firms in the industry for the skillfully talented individuals, and the corporation may be at a risk of losing key employees or be unsuccessful in attracting, recruiting, training and maintaining a gifted workforce that meets the organization’s needs. Hence, it may bring adverse impacts on the operations, sales, and financial condition of the company.

Analysis

Virtual team members and virtual workplaces have substantially changed the way tasks are carried out in various organizations around the globe. Bigger, as well as small organizations are developing virtual teams, which operate slightly in most cases distance away from one another (Pearson, 2003). Virtual employees and workplaces have affected the global job performance in the following ways. Virtual workplaces that are operated by organizations do not have to budget for office expenses for their employees. Overhead costs such as leasing of office space, utility expenses, and furniture purchases are not considered for organizations that have developed virtual workplaces and staff. Similarly, if the organization has an operational office, it can operate with fewer employees who will require a small office space for the activities of the organization.

Decisional analysis

The structure of an organization defines the way job tasks are initially grouped, divided and coordinated. There are six major elements that determine how managers design and establish their management structures. The elements include work specialization, departmentalization, the chain of command, decentralization and decentralization as well as the span of control.

Work specialization

This is the degree or level to which organizational tasks are divided into different tasks. The early assembly plants and division of labor are the main examples. The conveyor belt that enhanced the coordination of diverse labor products into one major final good complemented these. Hence, this resulted to large group of unskilled workers who were different from the initial group that was easily replaceable.

Departmentalization

This is the basis of collectively grouping jobs. Some of the most common methods of conducting these are by the function and it includes marketing, manufacturing as well as the geography, types of product and territories. This function is important in controlling the entire company structure (Kesler & Kates, 2010).

Chain of command

This is the unbroken authority line that extends from the top management level of the organization to the lowest echelon that identifies who reports to who. This is basically bureaucracy.

Span of Control

This includes the number of subordinates that a manager can effectively and efficiently direct. It includes the combined characters of people, groups, as well as the process of organizational management.While managers are responsible for ensuring that the needs of the organization are met, organization ensures that the leaders are responsible for activating a positive atmosphere as well as the welfare of employees within the organization.

Centralization and Decentralization

This refers to the degree to which the process of decision making is concentrated at a single point in the firm. Decentralization on the other hand is when the decision discretion is pushed down to the lower level (Drejer, 2002). There is a vital board of administration that manages the decentralization, market oriented and differentiated multi-divisional system and involves long term planning of the organization’s activities.

Recommendation

Processes in the company should be formalized. This includes the degree upon which jobs within the firm are standardized. Organizational human resource management is viewed to be a vital asset that requires being effectively and appropriately handled to be able to optimize returns from these assets (Drejer, 2002).

Conclusion

The best choice that is more important is the customer. Due to competition in the market, customers will help the company to do away with its competitors and gain a competitive advantage. It is important to note that prospective customers do not look for products or services. Therefore, the company should ensure that it acquires loyal customers. A company cannot operate with customers and therefore, I think that it is important for Toyota Corporation to value its customers so as to make more profit and have a competitive advantage in the market.

References

Drejer, A. (2002). Strategic management and core competencies : theory and application. Westport, Conn: Quorum Books.

Kesler, G., & Kates, A. (2010). Leading organization design: How to make organization design decisions to drive the results you want. John Wiley & Sons.

Pearson, C. (2003). Archetypes in organizational settings: a client's guide to OTCI professional report. Center for Applications of.