The Company’s Organizational Structure and the Integration that It Fits
ArcelorMattal is a renowned steel producing corporation that started its operation in 2006. The corporation’s evolution was through a takeover and strategic merger between Arcelor and Mittal steel companies. The company has recorded a tremendous growth since its inception.
Its growth and exemplary performance are attributable to its effective management and organizational structure (matrix) (Rugman & Collinson, 2006, P, 2). Indeed, its operating structure facilitates effective allocation of tasks, coordination of activities, supervision and communication.
These elements have been instrumental in the company’s growth and expansion. The structure also allows stakeholder participation in the formulation of performance policies.
The non-bureaucratic structure can fit the matrix functional l set up due to it allows the combination of departments. This explains its effectiveness in steering growth in institutions (Rugman & Collinson, 2006, P, 2).
The Company’s Matrix Organizational Structure
Indeed, the company operates under matrix organizational structure that fosters combination of various departments for effective service delivery. The structure provides viable operating framework that is effective and efficient. The framework fosters coordination between departments (Peng, 2009, P, 364).
It facilitates combination of functional and other operating departments with an aim of ensuring improved output. It also facilitates efficient allocation of tasks and communication between staff members.
This is evident since it creates participatory leadership and systematic engagement criteria. This fosters mutual relationship between employees and development of credible teamwork.
Evidently, the organizational structure has been instrumental in driving the company’s performance to a greater height. It has enhanced its production capacity through innovation and participatory systems. It has facilitated democratic system of administration where every individual is viewed with respect.
It has also enhanced coordination of activities that are crucial for achievement of meaningful growth. Daft 2010, P, 23) noted that matrix organization structure is viewed as a performance structure that institutions with strong growth aspirations should embrace.
It provides credible incentives that ensure effective coordination of resources, specialization of staff, communication and flexibility in the allocation of resources.
These elements are critical in steering development as noted in the case of the company. In particular, the structure facilitates resource coordination by ensuring effective allocation of tasks, training of employees and supervision of activities. It has also enhanced specialization in the company.
That is it drives allocation of staff in functional departments in consideration to their field of competence (Paul, 2011, P, 2). This is ensuring that every employee is recruited in the appropriate field of operation or expertise.
The structure has also improved communication through constant coordination and flexibility through systematic sharing of the available resources. These elements explain the imperativeness of the matrix structure that remains an effective administrative tool.
List of References
Daft, R, L 2010, Organization Theory and Design. South-Western Cengage Learning, Mason, Ohio.
Paul, J 2011, International Business, PHI Learning, New Delhi.
Peng, W 2009, Global Business, South-Western Cengage Learning, Mason, OH.
Rugman, M & Collinson, S 2006, International Business, Financial Times Prentice Hall, Harlow.