Toyota Revolves around its organizational structure, culture, climate and decision making perspectives. All these factors impact Toyota’s ability to make decision and then take actions. Failure to acknowledge anyone of them in a sensible way might damage a company’s reputation. Lets discuss these factors in detail.
Organizational Structure is the framework of the company which lays down the foundation of the company. It acts as an operating manual that defines the way the jobs are distributed and how individuals interact within the company to achieve their goals (Distelzweig, 2004).
A detailed study on organizational structure relates organizational structure to the way information flows through the hierarchical arrangement. There are basically two types of organizational structure; centralized and decentralized. In a centralized system the highest layer of hierarchy is responsible for decision making and controlling departments and division. A centralized structure is usually designed and has a formal layout. While in a decentralized organizational structure, the decision making control is distributed among departments and each department has certain degree of independence. It is usually emergent. Bureaucracy in an organization is based on single chain of command from top level to bottom level. It is the most rigid and formal type of organizational structure. The work is properly divided and individuals carry out their roles impersonally (Writing, 2001).
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