Organizational Structure and Process Design Essay Example

experience in Marti. This individual utilized their contacts within the company to gather the necessary information. We communicated with a Senior Management member at Marti in Delhi via email, which provided us with a comprehensive understanding of the company's structure and strategy.

Additionally, we conducted an interview with the head of Marti's Regional office in Bangor to gain insights into their relationships with vendors and dealers. To further understand Suzuki's culture, we spoke with an employee undergoing training at SCM Japan. Furthermore, we interacted with summer interns and former employees of Marti at MM Bangor.

All these formal and informal interactions allowed us to develop a holistic view of the organization and appreciate Marti's systems and processes on a deeper level. The company operates using a Functional organizational structure that includes Horizontal Linkages. Activities are broadly divided based on functions such as Finance, Marketing, Engineering, Sales, Spares, Production, Materials, Production Engineering, Parts Inspection Quality Assurance Maintenance Human Resource Development Information Technology New Business Administration.These functions in Marti are further divided into smaller divisions based on criteria such as product, plant, or location. There are a total of 29 divisions, each headed by a Divisional Head. These divisions are then divided into 132 Departments, each headed by a Department Head. The organizational chart is shown below, with the complete version attached in an Excel file.

Marti has a flat structure with six functional levels: Workers & Technicians, Supervisors, Executives, Section Managers, Department Managers, and Division Managers. Division Managers report to Directors. Technicians are divided into 7 levels (L-1 to L-7), Supervisors into 3 levels (L-8 to L-10), and Executives and Managers into 4 levels (L-11 to L-14). Levels above

this include IDEM (Uncharged Department Manager), DUMP (Department Manager), DVB (Deputy Division Manager), and DVD (Division Manager). Section Managers can come from levels L-11 to L-14. An IDEM or DUMP can lead a Department, and a DVB or DVD can lead a Division.

To stay competitive, Marti understands the importance of boundary spanning units. Employees are required to visit showrooms of other car manufacturers frequently in order to gather information about their customer service and offered services. One group member named Punned was asked to visit a Handy showroom.
Punned spoke with the sales representative at the store and gathered as much information as possible. When asked for his telephone number, Punned provided a fake one by altering the first and last digits. However, Punned was surprised when he received a call from the sales representative two days later, indicating that they must have tried different numbers. During the call, Punned informed the representative that he had already purchased a Marti Zen instead of Santos. The representative congratulated him on his new car and asked about why he chose Zen over Santos. Throughout their conversation, the representative remained polite and enthusiastic. Impressed by this positive experience, Punned reported it to his managers at MULL as feedback on the dedication and determination shown by the representative, which was lacking among other members of the sales force.

The increasing importance of boundary spanning units can also be seen in departments like Marketing and Service. In these departments, the head of Marketing and Sales reports directly to the MD, whereas other departments like Finance and Production need to go through Joint Managing Directors for communication.

Horizontal information linkages are also significant in

this context. Lamination Systems utilizes various Information Systems that provide Horizontal Information Linkages. These integrated systems effectively meet different department's information needs in an efficient manner.
The IT Department at Marti has developed and adapted various systems to meet changing requirements. These systems include the Production Management System, Finance and payroll, Marketing & sales, Spares, Extranet with Dealers, Data warehousing, MIS systems, Supply Chain Integration Initiatives (Extranets), Knowledge Management Portal, and Vehicle tracking. Email, messaging, and workflow systems are also important.

Some departments have designated coordinators for specific tasks. For example, the Production Shop has a Quality Coordinator who serves as a communication point for quality-related matters. Cross-functional teams are formed by individuals from related departments to achieve specific targets.

These systems and coordination efforts are utilized for various purposes in the automotive industry such as Quality Improvement, Problem Solving, Cost Reduction, New Product Development, and New Product Trials.

Formalization is highly valued at Marti as all operational procedures, standards methods,and instructions are formally documented. Each department also has its own corresponding "Department Procedures" which outline their scope of work,responsibilities,and workflows.

These procedures, approved by division heads, are accessible to all relevant personnel (mostly in electronic form) and can be referenced by other departments. In production shops, the standard operating procedures are documented and displayed on workstations under the name "Marti Operations Standards" or MOMS. Other standards like Marti Engineering Standards (MESS), Marti Inspection Standards for Parts (MIS-P), and Marti Inspection Standards for Testing (MIS-T) are also available.

Changes made to these documents are recorded for back-tracking purposes. The functional structure and division of labor in Marti lead to a high degree of specialization. The span of control is

interesting as most positions in Marti have a functional nature. For instance, there may be 4-8 individuals with different levels (L-1 to L-13) directly handling certain cases within the Section Manager in certain departments. It's important to note that individuals at the L-13 level may not have any direct subordinates. The span of control varies depending on the management level: around 3-6 at the top management level, ranging from 4-8 at the middle management level, and from 0-5 at lower management levels (excluding production).

However, the span of control at lower management level in production departments can increase up to 40-50, as there are many workers and technicians who report directly to a line supervisor or shift in-charge. In terms of centralization, Marti has low centralization as decision-making authority is decentralized and distributed across all levels.

Marti is highly rated on the professionalism dimension because most jobs require technical skills, especially in areas like Design and R where special training at Suzuki is also required. This is supported by the fact that around 1900 employees of Marti have received training at Suzuki facilities.

Additionally, Marti has a workforce consisting of over 80 managers, over 600 graduate engineers, over 200 diploma engineers, and all workers and technicians are required to have at least an IT qualification.

To effectively address specific challenges posed by increasing competition in the automotive sector, Marti has implemented a project-based structure. Approximately two years ago, a meeting was held with middle and senior-level executives to discuss forming teams with specific goals. Around thirty teams were formed with each team consisting of 8 to 10 members. These teams were assigned mandates focused on cost reduction and new

product development. They were given resources and authority to implement their projects. For example, one team worked on value analysis and value engineering to decrease costs for specific components.Another team focused on enhancing the JDK Power ratings for IIS. The teams were given high priority and expected cooperation from all departments. They directly reported to the JDK, which assisted them in resolving any issues they encountered. Top-performing teams received generous rewards.

The corporate culture of Marti, initially a US-based company collaborating with Suzuki in NC, had a bureaucratic nature. However, liberalization and vaporization brought about significant changes in Marti's culture. For instance, previously employees would sign an attendance register and often arrive late by 30 minutes or an hour. But now, with the implementation of electronic swipe card based attendance system, even being one minute late can lead to salary deductions.

Prior to this change, many workers would sign the attendance register and then outsource their work to temporary laborers whom they paid RSI 50 per day instead of receiving monthly wages from Resorts like others did. This guaranteed employment provided little motivation for workers to contribute towards the company's well-being.

The work culture at MULL used to frustrate and alienate even those employees who had undergone training in Japan. This was evident during the worker strike that severely impacted Marti in 2001.After recovering from the strike, Marti experienced a noticeable shift in culture. The introduction of an IVR scheme heightened employees' sense of insecurity, but it was done for a good reason. Increasing variable pay helped align the interests of both the company and its employees. To improve the work environment, a morning ritual of exercising to

Japanese music was implemented. Additionally, employees wore a common uniform and dined together in a shared canteen. This even allowed one to have a meal with MD Aguish Shatter in the company canteen.

Now, MULL has a stronger focus on its mission - maintaining market share and serving as Suzuki's small car sourcing hub. Its vision is to be the leader in the Indian automobile industry, ensuring customer satisfaction and creating wealth for shareholders. Despite being acquired by a Japanese company, it still aims to be a source of pride for India.

Compared to other Indian companies like Handy and Deadwood, Marti's culture is most similar to those with East Asian origins. It emphasizes teamwork and treats employees like family. Innovation is encouraged through constant process improvements using quality circles.

Recently at Marti, there has been an increasing overtime culture where promotions are linked to feedback and willingness to stay late as indicators of dedication and hard work.Comparing and contrasting the culture and practices at Marti with its parent company, Suzuki Motor Corporation of Japan, is an interesting exercise. At SCM Japan, there are 8 divisions in the organizational structure. The detailed organizational structure of SCM Japan can be found in the appendix, including further subdivisions and departments. We interviewed A.B. Sinai, Deputy Manager (Engineering) at MULL, who underwent training at Suzuki in Japan for two years. During this interview, we discovered intriguing differences in work culture between MULL and SCM.

At SCM Japan, employment is viewed as a lifelong commitment without layoffs or employees leaving for other jobs. New employees joining the company are celebrated with ceremonial parties to mark their arrival. The company places great trust in

its employees, who reciprocate by being devoted to the organization. There is no attendance monitoring through ID cards or punishment systems; official telephones are not used for personal calls.

Moreover, there exists a strong sense of team spirit and minimal conflict at SCM. Assignments are given to teams and if one employee struggles, their teammates provide assistance. The organization follows a strict hierarchy where promotions are based on seniority.It typically takes around eight years for an entry-level employee to advance to the position of asset manager (Cockroach), and another eight to ten years to become a manager (Cache). While there is limited departmental rotation, meticulous planning is emphasized. Jobs are assigned based on hourly allocations, and meetings are brief and focused. All employees record their movements on a board for easy tracking.

Official working hours are from 8:45 AM to 5:30 PM, except on Wednesdays when most employees work until 7:00 PM, and other days until 10:00 PM. There are only 240 working days in a year.

In terms of power dynamics, management holds the majority of control and power within MULL. During a workers' strike in 2000, management refused the demands made by the workers and operated the plant with the assistance of hired intercultural labor. This posed difficulties for the striking workers as they struggled to sustain their protest. Eventually, they were compelled to end the strike and accept some changes imposed by management.

Conflict resolution occurs either within departments or between them. Departments sometimes engage in political maneuvers by leveraging referent power based on their proximity to Japanese management. The legitimate power held by Japanese management has further strengthened due to increased involvement from Suzuki Motor

Corp.In conclusion, a strategy is a plan to achieve organizational goals by interacting with the competitive environment. Organizations have goals and strategies that determine their direction and how they will achieve it. Strategy involves making competitive actions, such as performing different activities than competitors or executing similar activities more efficiently. The strategic profile of Marti can be explained using two models.

Firstly, Porter's competitive strategies model was implemented by Marti when it introduced the "Marti 800" car in 1983 at an affordable price. This move resulted in a significant change within the industry and led to increased sales over time for the car. Marti focused on low-cost leadership and expanded its product range to include vans, multi-utility vehicles, and mid-sized cars.

Secondly, the Miles &Snow Theater typology model suggests that organizations strive for a fit between internal characteristics, strategy, and the external environment. Marti's strategy aligns with this model as it seeks congruence with its external environment. Throughout its history, Marti has maintained stable products with minor innovations aimed at improving product utility. In 1983, recognizing opportunities for growth, Marti innovated by launching the Marti 800 and expanding into other segments like mid-car and multi-utility segments. Since then, it has consistently maintained stable business operations across all its brands.

Therefore, based on these models, Marti can be classified as an "Analyzer," which combines aspects of both prospector (through innovation) and defender (through maintaining stability).Interorganizational relationships refer to enduring transactions, flows, and connections between two or more organizations. These relationships are crucial for the success of firms in today's business landscape.

The Government of India has been a shareholder in Marti Dog Ltd since its inception. While the government previously

held a majority stake in Marti, it now owns 18.28% of the company. Throughout this partnership, Suzuki Motor Corp has also played a significant role.

While the government does not involve itself in Marti's day-to-day operations, it has had involvement in strategic decisions. For instance, introducing new car models required approval from the Project Approval Board under the Ministry of Industry.

In 1998, following a dispute over management succession, both the government and SCM agreed that appointments for Chairmen and Managing Directors would be made through mutual consultation.

Although the government's direct involvement with Marti has decreased due to reduced shareholding, its decisions continue to impact the company. Changes in pollution emission norms implemented by the government directly affect Marti. Additionally, various government policies may have direct or indirect effects on Marti's operations.Marti heavily relies on interorganizational relationships, particularly with its parent company SCM. Since its inception, SCM has been involved in the production aspect of Marti, providing all the designs. With a 51% stake in Marti, SCM has become the parent company and their ties have been further strengthened. Additionally, several Japanese managers are part of Marti's management team.

These relationships play a crucial role in helping companies navigate through crises. For instance, when faced with high demand for diesel vehicles like Zen and Esteem models in India, Marti Dog Ltd felt pressure to meet this demand. In response, Marti requested Suzuki Motor Corporation (its parent company) to find a solution for the supply of diesel engines promptly.

Suzuki is now considering both in-house production and partnering with other manufacturers such as Fiat, People, and Volkswagen. This example showcases how relationships can be formed like a chain between organizations.

In today's business environment, many companies rely on vendors and suppliers for specific components. Similarly, Marti depends on vendors both domestically (in India) and internationally (especially in Japan) for car production.

In fiscal year 2002 alone, Marti purchased components worth RSI 780.4 crore from Suzuki alone. Among these vendors is DOC Engineering - their primary supplier of cylinder blocks for engines - which supplies nearly 70% of Marti's total needs. The remaining portion comes from Hindu Group Company Norse Foundries, Matte Auto, and Karaoke Oil Engines.
The company's reliance on resource providers can lead to problems if a key supplier fails to meet their commitments. This was the case when Marti experienced a drop in production due to a three-month strike at DOC Engineering, resulting in a 4.2% decrease in sales in Mauritius in August with 32,127 vehicles sold. This situation emphasizes the importance of having adequate redundancy and not overly relying on only one or a few suppliers.

In addition to supplier relationships, Marti also values its relationship with dealers. It is crucial for the company to establish connections with dealers in various locations for car sales and after-sales service. Maintaining positive relationships with dealers is essential as they are the face of the organization to end customers. Marti primarily engages with customers through its network of dealers, making them key intermediaries.

Marti operates across India and has 250 dealers, including 17 in Karakas and 5 in Bangor. To effectively manage these dealer networks, Marti has Regional Sales offices.