Organizational Structure as A Fundamental Function of Effective Management. The Case of Tesla

Proceedings of The 6th International Conference on Business, Management and Economics

Year: 2022



Organizational Structure as A Fundamental Function of Effective Management. The Case of Tesla

Dr. Ioanna Dimitrakaki



Organizational structure is a construct that has had an important role in terms of the performance of an organization. Therefore, the effective management of an organization has been systematically and consistently linked, with the deep understanding of the importance of the organizational structure and its proper design, or its re-engineering. The external, organizational environment is at the present, so fluid that decisions concerning structure and corporate restructuring have become central.

It has been emphasized that the structural decisions concerning the organizational structure are undoubtedly among the most important decisions undertaken by the leadership. This can be justified, as the organizational structure determines the ways in which overall work and tasks are formally divided, grouped and proper ways of coordinating them, are developed. The structure, therefore, is not something simple. It reflects the theory of each organization, regarding the way it trusts, that the various tasks within, should be separated / grouped, in ways that can efficiency and effectiveness, can be achieved.

Similarly, it has been argued that the structure of an organization provides the form (or formula), in relation to the success of multiple functions, within the environment (internal and external). The purpose of this paper is twofold:

  • on the one hand it is the thorough study of the concept of organizational structure and its impact on management effectiveness and organizational performance
  • on the other hand, it is, the analysis of a case study (Tesla) and the production of useful conclusions, in relation to the above.

Conclusively, we can tell that the οrganizations can learn from the study of the specific company, on how the structure can be used in the specific case-where there is a clear vision and an innovative idea. They can also understand how the structure needs to be adapted to produce

keywords: Organizational structure, performance, Tesla, performance, productivity, Central Management .