Many factors contribute to a company’s success, even if a well-engaged workforce is not the only one that matters. A well-defined organizational structure can help better understand and handle human resource challenges such as management authority. The organizational framework establishes the formal reporting relationships that control the organization’s workflow and offer exposure to all personnel. An organization with a good design encourages cohesiveness by reducing or eliminating workplace uncertainty and ensuring that everyone knows their roles, duties, and responsibility. Thus, the paper will examine several fundamental problems impacting an organization’s effectiveness, including contemporary trends in organizational design, effective corporate structure, and organizational change. Tesla Inc. will serve as our case study to assist us in expounding further on the areas mentioned above of concern.
Tesla Inc. has a layout that is organized well, and as a result, it can produce a wide range of products. A business’s organizational or corporate structure is the design and system that connects the organization’s multiple components (Bright et al., 2019). It is easy to recognize the institutional framework of Tesla because of the company’s strict control over personnel and its limited international operations. An organization’s leadership team must effectively communicate and promote new business development and improvement initiatives. When it comes to meeting operational objectives and launching new initiatives, its corporate formation gives the business advantage. Active management is heavily dependent on the company’s arrangement, which must be capable of implementing new strategies.
Tesla’s success is partly due to its management team, which is highly organized, one of its fundamental practices. The configuration of an organization gets dictated by its mission. Tesla’s organizational design is similar to other businesses in numerous respects, although on a smaller scale than more prominent organizations. Tesla’s worldwide network is hierarchical. This firm comprises teams or offices responsible for domestic and international activities, regardless of their location. It is a means of exercising extensive administrative control over a business’s operations prevalent in traditional corporate structures.
The morphology of Tesla Inc. is based on a solid centralization emphasis. The goal of centralization is to delegate control to a single group or team who will be responsible for making all of the company’s decisions. As a result, the company’s central headquarters comprises the leaders of the offices in the worldwide hierarchy (Alghalith, 2018). Even though it is large, Tesla’s regional and global operations are not well supported by its current design. The majority of the firm’s overseas activities are determined at its headquarters. The divisions and groups play a vital role in Tesla Inc.’s automotive business. In addition to marketing and financial reporting, these divisions are responsible for many other operations (Bright et al., 2019). The vehicle industry and the energy-generating and storage sectors are the two major segments of the company’s organizational framework. These divisions are less important than the organization’s function-based layout.
The virtual world has transformed car production, and many firms have had to restructure their processes to stay competitive. Tesla has not been left behind either, thanks to a well-executed reorganization of its business processes. Worldwide activities are better managed when it has a well-designed corporate layout. A corporation can swiftly adopt a new strategy to match its production. The regional divisions allow for financial reporting and analysis, laying the groundwork for future regionalization in the global automobile industry. Tesla may take advantage of its organizational network to grow worldwide and boost competitiveness in the automobile industry. Organizational clarity allows the company to manage competitive advantage development centrally.
As a result of artificial intelligence, the fourth industrial revolution has been triggered across many industries, notwithstanding the motor industry. For example, robotic arms are commonly used in manufacturing and industrial activities, but their optimal use requires AI to be taught appropriately. These gadgets can benefit from the aid of a Digital Twin to train their AI. The ability to collect data from the environment and apply one or more AI policies to the activity at hand is a challenge in this area (Matulis, 2021). Tesla, just like its competitors, has embraced the use of robotic arms aimed at increasing its production.
The inflexibility of the organization makes it difficult for Tesla to make fast changes in its operations. For better or worse, global centralization has the structural property of making it difficult for foreign offices in their various regional markets to respond quickly and effectively to their issues. Tesla’s international offices will require extra resources to cope with this issue, which may necessitate a change in their structure (Alghalith, 2018). Firms with more scattered corporate systems have a higher chance of competing with local rivals in foreign marketplaces than companies with more concentrated structures.
Despite several branches a firm may have, the hierarchy of a significant business remains opaque, yet, its layout remains stable, functional, and efficient, with well-defined functions. Companies that wish to succeed in today’s fast-paced and constantly changing world should change. It is true not just of their products and services but also their foundation. Instead of focusing on monetary pay, today’s top talent is more concerned with how businesses adapt to change to provide a long-term secure work environment. Working or remaining in a disordered business rife with political intrigue and instability would be untenable for someone with extraordinary abilities and potential.
References
Alghalith, N. (2018). Tesla: innovation with information technology. International Journal of Business Research and Information Technology, 5(1), 37-51.
Bright, D. S., Cortes, A. H., Hartmann, E., Parboteeah, K. P., Pierce, J. L., Reece, M.,… & O’Rourke, J. S. (2019). Principles of management. OpenStax.
Matulis, M., & Harvey, C. (2021). A robot arm digital twin utilising reinforcement learning. Computers & Graphics, 95, 106-114.