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Runninga Head:a ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 1
Organizationala Structurea anda Culturea Report
MBAa 580a
Decembera 11,2021
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 2
Executivea summarya
Organizationala structurea anda culturea area integrala elementsa thata havea thea potentiala toa
influencea thea abilitya ofa aa businessa toa operatea innovatively.a Ina thea casea ofa thea luxurya automobilea
business,a therea isa ana opportunitya toa makea changesa ina itsa structurea anda culturea soa thata ita cana bea morea
conducivea toa innovation.a a Sinea thea businessa entitya intendsa toa integratea thea Interneta ofa Thingsa (IoT)a
concepta intoa itsa automobiles,a ita isa imperativea toa acceleratea innovation.a Ita cana acta asa thea criticala
pathwaya anda helpa thea companya toa adapta toa thea competitivea anda ever-changinga businessa landscape.a
Thea purposea ofa thea reporta isa toa recommenda changesa thata cana bea madea toa thea currenta structurea ofa thea
entitya soa thata ita cana supporta aa culturea ofa innovation.a Thus,a bya makinga thea recommendeda change,a ita
willa bea possiblea fora thea organizationa toa effectivelya implementa IoTa intoa itsa producta linea anda delivera
bettera valuea toa itsa customers.a
Introductiona
Organizationa structurea refersa toa thea hierarchya thata isa followeda throughouta aa firma thata
influencesa itsa performance,a operations,a anda overalla workflow.a Ita isa thea mannera ina whicha
organizationala activitiesa anda functionsa area fragmented,a arranged,a anda coordinateda (Ahmadya eta al.,a
2016).a Ita hasa aa significanta impacta ona thea abilitya ofa ana entitya toa carrya outa itsa businessa operationsa anda
progressa towardsa itsa goalsa anda objectives.a Organizationala culturea cana bea defineda asa thea seta ofa
beliefs,a values,a anda attitudesa thata givea aa uniquea identitya toa ana entity.a Ita setsa thea overalla contexta ofa
ana entitya anda influencesa thea mannera ina whicha thea workforcea behavesa withina thea organizationa
(SHRM,a 2021).a Albashitia hasa stateda thata organizationala culturea isa onea ofa thea keya factorsa thata
impacta innovation.a Ina ordera toa helpa thea businessa integratea connectivitya capabilitya intoa itsa producta
line,a itsa structurea anda culturea havea beena examined,a anda necessarya changesa havea beena
recommendeda thata cana fostera innovation.a
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 3
Ina thea report,a thea automobilea company’sa currenta organizationala structurea anda culturea anda
theira impacta ona innovationa havea beena examined.a Baseda ona thea evaluationa ofa itsa keya organizationala
attributes,a recommendationsa havea beena designeda toa makea changesa toa itsa currenta organizationala
structure.a a Thea mannera ina whicha thea newa structurea anda culturea cana supporta anda nurturea innovationa
hasa beena discussed.a
Impacta ofa currenta organizationala structurea ona innovationa
Thea currenta structurea thata existsa ina thea luxurya automobilea companya isa highlya complex.a Thea
higha complexitya isa duea toa thea facta thata ita isa challenginga toa accuratelya keepa aa taba ona thea levelsa ofa
hierarchy.a Thea talla matrixeda structurea designa isa thea reasona fora thea existencea ofa severala levelsa ofa
hierarchy.a Whena ana organizationa hasa sucha aa structure,a therea exista numerousa managersa whoa area
responsiblea fora managinga anda controllinga aa particulara sectiona ofa thea organization.a McPhaila hasa
argueda thata sucha ana organizationala structurea limitsa thea establishmenta ofa solida networksa withina thea
organizationala settinga (Johnson,a 2016).a Ita increasesa thea overalla distancea betweena thea managementa
anda thea staffa membersa anda cana increasea thea levela ofa complexitya bya hamperinga thea decision-makinga
processa anda restrictinga thea levela ofa progress.a
Thea talla matrixeda structurea ofa thea automobilea entitya hampersa innovationa becausea ofa thea
presencea ofa aa lengthya chaina ofa commanda anda limiteda communicationa anda collaborationa amonga thea
workforce.a Fora example,a duea toa thea existencea ofa severala levels,a newa anda creativea ideasa maya nevera
reacha thea topa management,a anda sucha ideasa mighta nevera bea implemented.a Bya restrictinga flexibility,a
thea generationa ofa innovativea ideasa anda creativea thinkinga isa curtaileda (Rishipal,a 2014).a Ina thea
automobilea company,a thea talla structurea actsa asa aa majora hurdlea thata increasesa thea gapa betweena thea
decision-makersa anda thea customers.a Thea slowa communicationa betweena thea differenta functionsa
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 4
withina thea entitya diminishesa cross-functionala coordination,a givinga risea toa thea issuea ofa poora
connectivity.
Thea currenta structurea ofa thea organizationa isa nota effectivea whena ita comesa toa addressinga
changesa ina marketa demand.a Thea standardizeda anda centralizeda approacha thata isa followeda ina thea
businessa undertakinga doesa nota allowa thea businessa toa functiona ina aa flexiblea manner.a Asa enterprise-
widea decisionsa area madea ata thea topa ofa thea hierarchy,a thea efficiencya ofa thea processa declines,a anda ita
doesa nota enablea thea organizationa ora itsa functionsa toa adapta toa thea evolvinga businessa climatea ina aa
timelya anda efficienta manner.a Whilea workinga ona newa projects,a evena thougha thea projecta managera isa
responsiblea fora supervisinga thea project,a thea maina authoritya residesa witha thea Vicea Presidenta (VP).a
Thea mannera ina whicha powera isa distributeda amonga thea employeesa affectsa thea abilitya ofa thea entirea
organizationa toa takea timelya decisionsa anda actionsa toa adapta toa thea evolvinga businessa climatea duea toa
thea changea ina marketa demand.a
Changesa neededa ina currenta organizationala structurea
Asa thea currenta organizationala structurea ofa thea luxurya automobilea businessa hampersa thea
progressa ofa innovation,a therea isa scopea toa makea changesa toa itsa currenta organizationala structure.a Ina
ordera toa facilitatea innovation,a aa flata organizationala structurea cana bea introduceda wherea thea levela ofa
hierarchiesa willa bea few.a a Aa flata structurea cana bea defineda asa thea organizationala structurea ina whicha
therea exista aa fewa layersa ofa management.a Thea shorta chaina ofa commanda positivelya influencesa
communicationa throughouta thea organizationa anda increasesa thea overalla efficiencya ofa thea decision-
makinga processa (BBC,a 2021).a Thea currenta talla structurea musta bea replaceda witha aa differenta structurea
wherea thea numbera ofa hierarchiesa isa limiteda soa thata thea gapa betweena thea decision-makersa anda
customersa cana bea limited.a Ita cana helpa toa strengthena thea existinga communicationa processa bya
increasinga itsa speeda anda efficiency.a Thea newa structurea willa supporta innovationa bya improvinga thea
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 5
levela ofa communicationa anda coordinationa soa thata creativea anda newa ideasa cana bea generated.a
Accordinga toa Kalaya anda Lynna (2016),a aa flata structurea supportsa innovationa becausea thea decision-
makinga processa isa carrieda outa ina aa centralizeda manner,a anda employeesa geta thea opportunitya toa acta ina
aa multifunctionala mannera anda engagea witha diversea employees,a fosteringa thea generationa ofa
innovativea ideasa (Kalaya &a Lynn,a 2016,a p.a 3).a
Thea recommendeda changea willa enablea thea companya toa acta ina aa morea responsivea waya toa
marketa demanda bya simplifyinga thea communicationa processa anda increasinga thea efficiencya ofa thea
decision-makinga approach.a Thea existencea ofa fewera levelsa ofa hierarchiesa ina thea organizationa cana
supporta bettera coordinationa amonga thea personnela thata cana helpa toa givea risea toa newa anda innovativea
ideas.a Similarly,a thea decentralizeda decision-makinga processa cana makea surea thata timelya decisionsa
area madea anda implementeda bya thea businessa entitya toa meeta thea evolvinga marketa demands.a
Accordinga toa Palepua eta al.a (2020),a maintaininga aa flata organizationala structurea cana leada toa continueda
growtha asa wella asa successa (Palepua eta al.,a 2020).a Thea newa structurea willa empowera thea automobilea
businessa toa adapta toa thea marketa demanda bya leveraginga aa highlya interconnecteda systema thata cana
allowa everyonea toa contributea toa incrementala improvement.a Georgea (2016)a hasa argueda ina hisa studya
thata onea ofa thea maina advantagesa ofa creatinga aa flata organizationala structurea isa thata ita allowsa aa
companya toa bea adaptablea toa changea whilea maintaininga aa transparenta environmenta (George,a 2016,a
p.a 8).a Thea changea toa thea currenta organizationala structurea willa helpa thea businessa toa operatea ina aa morea
flexiblea anda decentralizeda mannera anda influencea itsa abilitya toa reacta toa thea evolvinga marketa
variablesa sucha asa demand.
Organizationala changesa fora creatinga ana innovativea culturea
Thea changesa thata area madea ina ana organizationa havea thea potentiala toa supporta aa culturea ofa
innovation.a Innovativea culturea cana bea defineda asa thea worka climatea thata isa createda bya leadersa fora thea
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 6
purposea ofa nurturinga uniquea anda unorthodoxa thinkinga anda applyinga thea thinkinga ina thea real-lifea
setting.a Ata present,a thea culturea ofa thea organizationa worksa againsta innovation.a Ita increasesa thea levela
ofa complexitya throughouta thea entitya anda makesa thea entirea processa cumbersomea anda lengthy.a Fora
instance,a thea talla structurea increasesa thea durationa toa sharea newa ideasa witha thea management.a
Similarly,a ita alsoa slowsa downa anda limitsa thea overalla efficiencya ofa thea decision-makinga process.a
Accordinga toa Jantza (2015),a thea risea ina thea numbera ofa hierarchiesa ina aa businessa entitya negativelya
affectsa innovationa (Jantz,a 2015,a pa .3).a Ita limitsa thea generationa asa wella asa thea growtha ofa creativea anda
innovativea ideasa ina thea organizationala context.a Ina thea automobilea business,a thea centralizationa ofa
resourcesa leadsa toa thea existencea ofa inflexiblea processesa thata hindersa innovationa anda creativity.a Ita
restrictsa thea scopea anda abilitya ofa thea organizationala personnela toa adopta aa differenta patha whilea
performinga theira respectivea rolesa anda responsibilities.a Similarly,a thea lacka ofa independencea anda
autonomya ina thea organizationa hampersa thea optimuma usea ofa specializationa toa fostera innovation.a a
Fora creatinga aa culturea ofa innovationa ina ana organizationala setting,a somea ofa thea keya elementsa
thata musta bea focuseda upona includea philosophy,a corea capabilities,a organizationala objectives,a
structure,a accountability,a etc.a Thea existencea ofa aa largea numbera ofa hierarchiesa cana acta asa onea ofa thea
maina deterrentsa ofa innovation.a So,a ita isa necessarya toa busta hierarchiesa thata cana limita thea progressa ofa
innovation.a Thea changea ina thea organizationala structurea froma talla toa flata cana helpa toa cuta downa thea
higha levelsa ofa hierarchiesa thata increasea thea overalla complexitya ina thea organizationala setting.a Ita cana
createa aa culturea ofa innovationa bya facilitatinga bettera communicationa anda interaction,a sharinga newa
ideasa witha thea management,a anda adoptivea aa collaborativea approach.a Innovationa cana bea nurtureda
anda supporteda ina thea organizationa witha aa flata structurea asa ita cana increasea thea levela ofa independencea
anda autonomya ina thea organizationala setting.a Thus,a ita cana promotea flexibilitya anda enablea thea firma toa
adopta aa connecteda approach.a
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 7
Sincea thea automobilea businessa entitya intendsa toa integratea thea Interneta ofa Thingsa (IoT)a
technologya intoa itsa producta line,a therea isa aa needa toa changea itsa organizationala structurea anda culture.a
Thea newa flata structurea thata hasa beena proposeda willa helpa toa addressa thea gapsa ofa thea talla structurea anda
facilitatea innovation.a Thea eliminationa ofa aa largea numbera ofa hierarchiesa cana increasea thea levela ofa
flexibility,a autonomy,a anda independencea ina thea worka setting.a Ita cana servea asa thea pathwaya thata cana
enablea thea organizationa toa makea thea optimuma usea ofa thea specializationsa anda createa aa culturea ofa
innovation.a
Conclusiona
Thea currenta organizationala structurea anda culturea ofa thea luxurya automobilea businessa havea
beena examined.a Thea talla structurea thata existsa ina thea entitya actsa asa aa majora bottlenecka thata restrictsa
innovation.a Ita hampersa flexibility,a independence,a autonomya anda limitsa thea abilitya ofa thea
professionalsa toa makea productivea usea ofa theira specializations.a Ina ordera toa helpa thea organizationa
movea towardsa thea patha ofa innovationa anda creativity,a ita hasa beena recommendeda thata ita musta replacea
itsa talla organizationala structurea witha aa flata structure.a Thea newa structurea cana helpa toa supporta
innovationa anda enablea thea companya toa adapta toa thea evolvinga businessa climate.a Bya creatinga anda
maintaininga aa flata structure,a thea decision-makinga processa cana bea madea morea efficienta ina nature,a
anda thea employeesa willa bea ablea toa operatea ina aa coordinateda manner.a Ita cana facilitatea innovationa bya
boostinga thea levela ofa interconnectednessa throughouta thea organizationa anda ensuringa thata individualsa
operatea ina aa multifunctionala manner.a Asa thea businessa entitya intendsa toa incorporatea IoTa technologya
intoa itsa automobiles,a thea changea ina itsa organizationala structurea isa aa necessitya toa createa aa culturea ofa
innovation.a Ita willa bea ablea toa effectivelya adapta toa thea evolvinga businessa landscape.a
ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 8
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BBC.a (2021).a Hierarchicala anda flata organisationala structures.a BBCa News.a Retrieveda Decembera
9,a 2021,a froma
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%20is%20an,a%20short%20chain%20of%20command.a
George,a D.a (2016).a Trusta &a Growtha ina thea Workplace:a ana Analysisa ofa Leadershipa ina Flata
Organizations.
Johnsona McPhail,a C.a (2016).a Froma talla toa matrix:a Redefininga organizationala structures.a Change:a
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Jantz,a R.a C.a (2015).a Thea determinantsa ofa organizationala innovation:a Ana interpretationa anda
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ORGANIZATIONALa STRUCTUREa a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a 9
SHRM.a (2021,a Septembera 13).a Understandinga anda developinga organizationala culture.a SHRM.a
Retrieveda Decembera 9,a 2021,a froma https://www.shrm.org/resourcesandtools/tools-and-
samples/toolkits/pages/understandinganddevelopingorganizationalculture.aspx.a
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