Tuesday, April 6, 2010

Organizational Structure on honda

Honda has a very tall structure inside of their organization. Honda tries to spread the control of their organization evenly over all of their departments. Honda feels that no one department should have enough power to run the company. The executive council is at the top of Hondas organizational structure. The council supervises the company and the direction that it is going and makes sure that the company stays on track with the overall vision of the company. The decisions the council makes are trying to maintain that the company keep making a high quality product and keep innovating without growing too much to become too complex. The main goal of Honda is to make a good high quality product that people think gives them safety and comfort. This is what the council bases every decision off of. Honda also has a good horizontal lay out of their organization. They have the motorcycle operations, automobile operations, power products operations, customer service operations, production operations, purchasing operations, business support operations, and business management operations. These are laid out so that there is very little distance between top management and the lower level employees. Honda does a very good job with their organization, on making sure that everything is ran as planned and that nothing gets out of line with the way that it is suppose to be. Honda is also a very centralized organization, with several layers of management that control the company by maintaining a high level of authority, which is the power to make decisions concerning business activities. Honda focuses on top-down management, whereby executives at the top communicate by telling middle managers, who then tell first-level managers, who then tell the staff what to do and how to do it. Honda is a formulized organization as well, they have rules and procedures that are written out and enforced along with regulations. These rules and regulation are enforced inside of the organization and are followed by every employee no matter their status in the company.

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