Case Study Detroit Electric Organizational Structure

Detroit Electric Company – Perfect Effective Organizational Structure and Success

Organisational Structure

Detroit Electric Company is believed to be using the Division of Labor organisational structure. This structure involves the management of the organization dividing the overall task of the organization into precise jobs having accurate activities. These activities outline what exactly the person performing the job is supposed to do. Each division within the organizational structure has all the obligatory resources and utilities within itself so that it can produce the expected product according to Robbins (2007). He continues to claim that this kind of organisational arrangement is highly dependent relative of the capability of the establishment

It does not do any design or manufacturing. The company maintains that this kind of organizational structure helps it escape capital expanses which may be too huge for it to afford at this point in time, bearing in mind that it is still at start up level. However, there is indication that this company may slowly stop outsourcing its operations as time goes by and as their revenues continue to build on.

The reason why Detroit Electric chose to use this structure is to capitalize on the economic advantage that is brought by division of work into highly specialised or precise jobs. The company realised that there was already the presence of specialised vehicle manufacturing companies such as Proton Holdings where manufacturing resources could be outsourced to. Proton Holdings was chosen to do the manufacturing activities of Detroit Electric because it had a modern production facility was committed to research and development, was cost efficient, stable, and had a highly qualified

These structures may not always work in other countries. This calls for a change of strategy that may be expensive to implement. Some firms end up withdrawing their business operations from some countries altogether if the cost doing business becomes unfeasible (Jacobides, 2007).

Promoting Ethical Behavior at Detroit Electric Ethics is about acceptable behaviour, doing the good or right thing (Markie, 1990). At Detroit Electric, there should be a statement on the core values of the company. The core values guide the employees of the company and serve as reference of what the company upholds. These core values could for example be Honesty, Integrity, and Transcendence. All workers should also ensure that they report to work in time – at least some fifteen minutes prior to their sessions. This enhances their respect towards their job at Detroit Electric. It also increases their productivity at work (Markie, 1990). It should also be emphasised that all personnel at Detroit Electric preserve professional demeanor at all times. They should be cordial to all other employees and clients. They should not allow their home life and family affairs spill over to the work place. They should respect and appreciate other people’s contributions in debates and