The paper 'Fit Between Core Processes at Maruti Udyog Limited" is a good example of a management case study. The organizational structure represents the manner in which responsibility and authority are distributed as well as how to work procedures are executed within organizational arms. There are several variables dictating the most suitable structure which is going to meet organizational mission and vision at the log run. Centralization of power, hierarchy design and horizontal incorporation are factors to consider while putting up an organizational structure. Another factor of paramount importance in the design of the optimal organizational structure is the core processes of a firm.
The structure must be able to reflect key processes of an organization starting from source material to delivery of finished products. For any organization to achieve optimum results possible, it is crucial to select structures which match predetermined objectives, features of necessary processes and means of controlling those processes. Processes are very fundamental to every organizational structure model. For example, information and decision process are available in almost all subsections of the entire structure. Based on underlying roles and purposes, organizational structure can be seen as the body framework of the firm while processes represent mental capability (Galbraith 2002).
Therefore there are two elements of any organizational structures namely: processes and structure. It is therefore implicit that any structure makes sense if it is based on required processes. Process-based organizational structure as this paper is going to explore needs a number of processes to complement one another so as to function as a unit. Despite process teams and owners autonomy in inculcating high level of self-management, there has to be a mechanism within the structure which bring together different processes (Daft 2006).
Due to the fact that process-based organizations are designed to have independent processes managed by autonomous units, emphasis should be put in place to facilitate the formulation of logical objectives and performance parameters of every unit. These features must be obtained from the strategy by connecting strategic options to production and consumer processes. Semi-autonomous units are constructed in such a way that there would be minimal daily coordination. This is only possible if management takes upon itself to define units objectives geared towards sustainable business control. Global manufacturing organizations are experiencing several challenges resulting from fluctuations in demand profiles, irregular supply profiles and high customer’ s expectations.
As a result of this, there is an ever-rising need to develop factory performance which is the sole means of creating value for consumers. Among many other channels of improving performances is the design of a structure which just fit manufacturing processes in the best manner possible. The ultimate result of an optimal structure should gather for core processes through labor capacity maximization, reduction of run times and general minimization of liabilities (Hammer and Stanton 2001).
This essay will focus on the organizational structure of Maruti Udyog Limited and how best it fits its conversion of raw materials to finished goods. Maruti Udyog Limited is a subsidiary company of Suzuki Motor Corporation one of the global leaders in automobile manufacturing and distribution. Maruti was chosen due to its readily available information and global market share.
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Hammer, M. & Stanton, S. (2001). How Process Enterprises Really Work, Harvard Business
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