netrashetty
Netra Shetty
ArvinMeritor, Inc. (NYSE: ARM) is a corporation headquartered in Troy, Michigan which manufactures automobile components for light service vehicles, trucks, and trailers. ArvinMeritor is a Fortune 500 company.[1]
In 1997, Rockwell International spun off its automotive business as Meritor. In 2000, ArvinMeritor formed from the merger of Meritor Automotive, Inc., and Arvin Industries, Inc.[2]
CEO
Charles McClure
4
Director
David Devonshire
3
Director
Steven Rothmeier
4
Director
Ivor Evans
Director
James Marley
Director
Victoria Jackson
7
Director
Joseph Anderson
Director
Rhonda Brooks
3
Director
William Newlin
CFO
Jeffrey Craig
CIO
DH
COO
Carsten Reinhardt
Emissions Technology Group
HHW
Communication
LC
Legal
VB
Human Resources
LO
4
Light Vehicle Systems
Philip Martens
Treasurer & Development
ML
Secretary
BN
India
LD
Aftermarket & Trailer
JM
Industrial
TB
Procurement
As corporations become very large they often restructure as a means of revitalizing the organization. Growth of a business often is accompanied by a growth in bureaucracy, as positions are created to facilitate developing needs or opportunities. Continued changes in the organization or in the external business environment may make this bureaucracy a hindrance rather than a help, not simply because of the size or complexity of the organization but also because of a sluggish bureaucratic way of thinking. One approach to encourage new ways of thinking and acting is to reorganize parts of the company into largely autonomous groups,
SBU Structure
called strategic business units (SBUs). Such units generally are set up like separate companies, with full profit and loss responsibility invested in the top management of the unit—often the president of the unit and/or a senior vice president of the larger corporation. This manager is responsible to the top management of the corporation. This arrangement can be seen as taking any of the aforementioned departmentalization schemes one step further. The SBUs might be based on product lines, geographic markets, or other differentiating factors. Figure 4 depicts SBUs organized by geographic area.
EMERGING TRENDS
IN ORGANIZATIONAL STRUCTURE
Except for the matrix organization, all the structures described above focus on the vertical organization; that is, who reports to whom, who has responsibility and authority for what parts of the organization, and so on. Such vertical integration is sometimes necessary, but may be a hindrance in rapidly changing environments. A detailed organizational chart of a large corporation structured on the traditional model would show many layers of managers; decision making flows vertically up and down the layers, but mostly downward. In general terms, this is an issue of interdependence.
In any organization, the different people and functions do not operate completely independently. To a greater or lesser degree, all parts of the organization need each other. Important developments in organizational design in the last few decades of the twentieth century and the early part of the twenty-first century have been attempts to understand the nature of interdependence and improve the functioning of organizations in respect to this factor. One approach is to flatten the organization, to develop the horizontal connections and de-emphasize vertical reporting relationships. At times, this involves simply eliminating layers of middle management. For example, some Japanese companies—even very large manufacturing firms—have only four levels of management: top management, plant management, department management, and section management. Some U.S. companies also have drastically reduced the number of managers as part of a downsizing strategy; not just to reduce salary expense, but also to streamline the organization in order to improve communication and decision making.
A heavy-weighted matrix organization exists of a matrix with dominant the project structure and underlying the functional departments. The product manager has a broader responsibility. Manufacturing, marketing and concept development are included. The status and influence of the product manager, who is usually a senior, is the same or higher as compared to the functional manager. compared to functional managers, because they have no direct access to working-level people.
A project organization exists of product oriented flows: project and teams. The project members leave their functional department and devote all their time to the project. They share the same location. The professionals are less specialized and have brioader tasks, skills and responsibilities. The functional manager is responsible for the personnel development and the more detailed technology research in the functional groups.
Companies can be classified to their organizational structures. Another variable companies can be classified to is the nature of the projects undertaken. We characterize projects by the number of employees needed to perform the tasks, or workload, and the number of tasks that are fundamentally different in nature. An example of the latter aspect is PCB development and structural design.
Creating cross-functional concurrent engineering teams is the right way to develop products. However, the pitfall is too many project at the same time, so that key people from engineering, marketing and manufacturing work at five or more projects at once. This results in congestion. Striving to work at 100% of the product development capacity legthens product development lead times enormously. A more realistic percentage is 80%. Attention must be focused on bottlenecks, these days most commonly found at the software development side of the project.
The product is complex. Total work is high. Employees can thus participate on a full-time basis. A project organization is the most appropriate organizational structure for these kind's of products.
In 1997, Rockwell International spun off its automotive business as Meritor. In 2000, ArvinMeritor formed from the merger of Meritor Automotive, Inc., and Arvin Industries, Inc.[2]
CEO
Charles McClure
4
Director
David Devonshire
3
Director
Steven Rothmeier
4
Director
Ivor Evans
Director
James Marley
Director
Victoria Jackson
7
Director
Joseph Anderson
Director
Rhonda Brooks
3
Director
William Newlin
CFO
Jeffrey Craig
CIO
DH
COO
Carsten Reinhardt
Emissions Technology Group
HHW
Communication
LC
Legal
VB
Human Resources
LO
4
Light Vehicle Systems
Philip Martens
Treasurer & Development
ML
Secretary
BN
India
LD
Aftermarket & Trailer
JM
Industrial
TB
Procurement
As corporations become very large they often restructure as a means of revitalizing the organization. Growth of a business often is accompanied by a growth in bureaucracy, as positions are created to facilitate developing needs or opportunities. Continued changes in the organization or in the external business environment may make this bureaucracy a hindrance rather than a help, not simply because of the size or complexity of the organization but also because of a sluggish bureaucratic way of thinking. One approach to encourage new ways of thinking and acting is to reorganize parts of the company into largely autonomous groups,
SBU Structure
called strategic business units (SBUs). Such units generally are set up like separate companies, with full profit and loss responsibility invested in the top management of the unit—often the president of the unit and/or a senior vice president of the larger corporation. This manager is responsible to the top management of the corporation. This arrangement can be seen as taking any of the aforementioned departmentalization schemes one step further. The SBUs might be based on product lines, geographic markets, or other differentiating factors. Figure 4 depicts SBUs organized by geographic area.
EMERGING TRENDS
IN ORGANIZATIONAL STRUCTURE
Except for the matrix organization, all the structures described above focus on the vertical organization; that is, who reports to whom, who has responsibility and authority for what parts of the organization, and so on. Such vertical integration is sometimes necessary, but may be a hindrance in rapidly changing environments. A detailed organizational chart of a large corporation structured on the traditional model would show many layers of managers; decision making flows vertically up and down the layers, but mostly downward. In general terms, this is an issue of interdependence.
In any organization, the different people and functions do not operate completely independently. To a greater or lesser degree, all parts of the organization need each other. Important developments in organizational design in the last few decades of the twentieth century and the early part of the twenty-first century have been attempts to understand the nature of interdependence and improve the functioning of organizations in respect to this factor. One approach is to flatten the organization, to develop the horizontal connections and de-emphasize vertical reporting relationships. At times, this involves simply eliminating layers of middle management. For example, some Japanese companies—even very large manufacturing firms—have only four levels of management: top management, plant management, department management, and section management. Some U.S. companies also have drastically reduced the number of managers as part of a downsizing strategy; not just to reduce salary expense, but also to streamline the organization in order to improve communication and decision making.
A heavy-weighted matrix organization exists of a matrix with dominant the project structure and underlying the functional departments. The product manager has a broader responsibility. Manufacturing, marketing and concept development are included. The status and influence of the product manager, who is usually a senior, is the same or higher as compared to the functional manager. compared to functional managers, because they have no direct access to working-level people.
A project organization exists of product oriented flows: project and teams. The project members leave their functional department and devote all their time to the project. They share the same location. The professionals are less specialized and have brioader tasks, skills and responsibilities. The functional manager is responsible for the personnel development and the more detailed technology research in the functional groups.
Companies can be classified to their organizational structures. Another variable companies can be classified to is the nature of the projects undertaken. We characterize projects by the number of employees needed to perform the tasks, or workload, and the number of tasks that are fundamentally different in nature. An example of the latter aspect is PCB development and structural design.
Creating cross-functional concurrent engineering teams is the right way to develop products. However, the pitfall is too many project at the same time, so that key people from engineering, marketing and manufacturing work at five or more projects at once. This results in congestion. Striving to work at 100% of the product development capacity legthens product development lead times enormously. A more realistic percentage is 80%. Attention must be focused on bottlenecks, these days most commonly found at the software development side of the project.
The product is complex. Total work is high. Employees can thus participate on a full-time basis. A project organization is the most appropriate organizational structure for these kind's of products.
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