Running head: ORGANIZATIONAL STRUCTURE
Organizational Structure at Tesla Incorporation
Bharath Kumar Sunkara
Ottawa University
Dr. Andy Black
ORGANIZATIONAL BEHAVIOR THEORY
Feb 7th, 2021.
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ORGANIZATIONAL STRUCTURE
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Alghalith, N. (2018). Tesla: innovation with information technology. International Journal
of Business Research and Information Technology, 5(1), 37-51.
The journal examines several aspects such as the organizational structure, and business model of
Tesla Inc. Alghalith (2018) uses tools such as strategic matrix and SWOT to analyze Tesla’s
competitiveness and how it integrates its systems.
Kim, H. (2020). Analysis of how Tesla Creating Core Innovation Capability. International
Journal of Business and Management, 15(6), 20-38.
The paper analyzes how Tesla penetrated and entered the market. Kim (2020) focuses on
innovations made by the corporation that led to its breakthrough. The study aims to understand
the terms of management and approach to consumers.
Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E., & Daim, T. U. (2020). Tesla Energy.
In Innovation Management in the Intelligent World (pp. 233-249). Springer, Cham.
The paper indicates that Tesla’s centralized structure is still doing well in the international
market due to innovations. Matthews et al. (2020) argue that Tesla has overcome most of the
challenges that may hinder its expansion.
Gentile-Lüdecke, S., de Oliveira, R. T., & Paul, J. (2020). Does organizational structure
facilitate inbound and outbound open innovation in SMEs?. Small Business
Economics, 55(4), 1091-1112.
The journal is concerned about the effects of organizational culture on innovation. GentileLüdecke et al. (2020) identify the advantages of a centralized structure on open originality
practices.
ORGANIZATIONAL STRUCTURE
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Ahmed, M. A. (2017). The importance of organizational structuring and
departmentalization in the workplace. The Journal of the Middle East and North Africa
Sciences, 10(4086), 1-9.
The journal is concerned about the relationship between continuous growth and organizational
structure. Ahmed (2017) seeks to understand departmentalization's impact and determine the
advantages and downsides to global and local companies.
Joseph, J., & Gaba, V. (2020). Organizational structure, information processing, and
decision-making: a retrospective and road map for research. Academy of Management
Annals, 14(1), 267-302.
Joseph and Gaba (2020) explain the function of organizational structure in making decisions.
The rationale for selecting the paper is that centralization at Tesla affects junior managers' ability
to make timely resolutions.
Singh, R., & Ramdeo, S. (2020). Techno-Structural Interventions: Restructuring.
In Leading Organizational Development and Change (pp. 261-284). Palgrave Macmillan,
Cham.
Singh and Ramdeo (2020) are concerned about organizational development, which should
consider restructuring. The insights shared could be used in Tesla's scenario to highlight why it
needs to rethink its organizational structure.
Peele, E. S. (2020). Restructuring Mobility Maintenance Organizations: Is It Time for
Change. AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB
OH WRIGHT-PATTERSON AFB United States.
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In the report, the review examines the centralized nature of Tesla’s administration. There is also
an analysis of the organizational redesigning process. Peele (2020) recommends the best
company structure that can address the goals and scope of organizations.
Yang, H., & Zhang, L. (2019). Communication and the Optimality of Hierarchy in
Organizations. The Journal of Law, Economics, and Organization, 35(1), 154-191.
Yang and Zhang (2019) study the ideal structure of multidivisional companies. The authors note
that while individual departments need to be coordinated, they should quickly adapt to regional
conditions. The paper digs deep into decentralized, hierarchical, and centralized organizations.
Trujillo, J. (2017). The Thinking of SpaceX/Tesla CEO Elon Musk. Existentia, 17, 231-61.
Despite the disadvantages of a centralized organizational structure, Tesla continues to thrive.
Hence, people have always wanted to know how Elon Musk, Tesla’s CEO, thinks. Trujillo
(2017) venerates and decodes his leadership skills that have steered Tesla against competitors.
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References
Ahmed, M. A. (2017). The importance of organizational structuring and departmentalization in
the workplace. The Journal of the Middle East and North Africa Sciences, 10(4086), 1-9.
Alghalith, N. (2018). Tesla: innovation with information technology. International Journal of
Business Research and Information Technology, 5(1), 37-51.
Gentile-Lüdecke, S., de Oliveira, R. T., & Paul, J. (2020). Does organizational structure facilitate
inbound and outbound open innovation in SMEs?. Small Business Economics, 55(4),
1091-1112.
Joseph, J., & Gaba, V. (2020). Organizational structure, information processing, and decisionmaking: a retrospective and road map for research. Academy of Management
Annals, 14(1), 267-302.
Kim, H. (2020). Analysis of how Tesla Creating Core Innovation Capability. International
Journal of Business and Management, 15(6), 20-38.
Matthews, T., Hirve, M., Pan, Y., Dang, D., Rawar, E., & Daim, T. U. (2020). Tesla Energy. In
Innovation Management in the Intelligent World (pp. 233-249). Springer, Cham.
Peele, E. S. (2020). Restructuring Mobility Maintenance Organizations: Is It Time for Change.
AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH
WRIGHT-PATTERSON AFB United States.
Singh, R., & Ramdeo, S. (2020). Techno-Structural Interventions: Restructuring. In Leading
Organizational Development and Change (pp. 261-284). Palgrave Macmillan, Cham.
Trujillo, J. (2017). The Thinking of SpaceX/Tesla CEO Elon Musk. Existentia, 17, 231-61.
Yang, H., & Zhang, L. (2019). Communication and the Optimality of Hierarchy in
Organizations. The Journal of Law, Economics, and Organization, 35(1), 154-191.
CASE STUDY
The Morning Star's Lattice Structure
The Morning Star Company, a highly successful and growing $700 million California tomato-processing company, was founded on a philosophy of self-management. The company envisions "an
organization of self-
managing professionals who initiate communication and coordination of their activities with fellow colleagues, customers, suppliers, and fellow industry participants, absent
directives from others."43 The core of the company's management philosophy is freedom, which is seen as important to effective coordination. The company believes that freedom allows employees
to be drawn to what they really like as opposed to having to do what they're told, increasing both enthusiasm and performance. Extensive applicant screening for fit with the company's philosophy
and new hire training on self-management helps employees adapt to the autonomy and responsibility of working without a formal boss.
The company's lattice structure requires a high degree of self-management. Each year every employee writes a personal mission statement that identifies how he or she will contribute to
Morning Star's overall objective of "producing tomato products and services which consistently achieve the quality and service expectations of our customers." Every employee also negotiates a
Colleague Letter of Understanding (CLOU) with the associates most affected by his or her work. The letter creates an operating plan for each employee, spelling out the relevant performance
metrics for as many as thirty activities. Employees are also personally responsible for acquiring the trainings, resources, and cooperation necessary to fulfill their role. 44
As in any organization, disputes arise between employees that must be settled. If an employee believes that someone has not lived up to his or her CLOU commitments, the two meet to
discuss the issue. If they cannot resolve the matter, they choose a trusted internal mediator to hear their views. If the losing party objects to the proposed remedy, a panel of six colleagues
assembles and either endorses the mediator's recommendation or proposes an alternative solution. If that is not accepted, the president brings both employees together and makes a binding
decision. Reflecting employees' commitment to self-management, employee disputes rarely make it to the president.45
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