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Volkswagen Organizational Structure Analysis Decent Essays

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Open Document Essay SampleCheck Writing Quality Show More Volkswagen has seen their ups and downs through the years, but have managed to somehow stay in the competition with other car manufactures. The recent years have shown a decrease in sales for Volkswagen. While the Volkswagen is still popular in Europe and China, it has been declining for some time in the United States. Americans are more attracted to South Korea’s Hyundai and Kia manufactures and who could blame them (Levin, 2014). American consumers are looking for vehicles that are modified by size, price, and utility (Levin, 2014). The economy, although improving is still not favorable, so price in particular is of importance to the consumer in the United States. Volkswagens are rare breeds, if you will, and are only attractive to …show more content… It’s obvious that the organizational structure Volkswagen is currently utilizing, is not working for them (Robbins & Judge, 2013, p. 481). The executives of Volkswagen state that a strong American presence is ideal for obtaining the number one status in the world by 2018 (Levin, 2014). This is a strong goal to strive for and with an improved organization structure, they can achieve this. It’s obvious that Volkswagen is struggling based on their ranking in the United States. They need to update and improve their structure and how all employees will address the following material. Notice all employees need to follow this material, that is because, I strongly believe that Volkswagen could benefit from a boundaryless organization. Although, this is a bold move, it is most …show more content… The traditional route would be the matrix structure. Robbins & Judge (2013) defines a matrix structure as an organization that creates dual lines of authority and combines functional and product departmentalization (p. 488). As I think that Volkswagen would benefit from this structure, I believe that the alternative, nontraditional structure is the better choice. With the many trials and tribulations, Volkswagen would improve the most by becoming a boundaryless organization. This choice will change the dynamics within the organization and I think is just what they need. Robbins & Judge (2013) defines a boundaryless organization as an organizations that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams (p. 492). This may seem intimidating and scary to Volkswagen, but may be just the boost that they need to become number one in 2018. The one great aspect of a boundaryless organization is that the teams are comprised of top executives, middle managers, supervisors, and operative employees, which is known as a cross-hierarchical team (Robbins & Judge, 2013, p. 493). This organizational structure will benefit Volkswagen now and in the future, in my

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