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oRGANIZATIONALSTRUCTURE FOR tESLA
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4 PAGES APA PAPER ON THE ORGANIZATIONL STRUCTURE USED BY TESLA
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Tesla Organization structureStudent Name
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, TESLA
Organizational Structure
Organizational structure is the style of the system set within an organization to manage and run
the core business and production. It dictates the type of management structure in utilization of the
company resources in order to achieve the set goals and the desired vision. The design through which
the company patterns and components interact. Tesla Motor Vehicle Production Company uses the U-
form traditional corporate organizational structure to run its business. The traditional corporate
organizational structure and a managerial style that puts into consideration the aspects of production
control and a limit to operation expansion in the world market. The manufacture of the electric cars,
solar panels, batteries, and environmental friendly energy solutions uses the U-form corporate structure
with set on central operations, divisions and a Function-Based Hierarchy to manage and run its
production and marketing operations. The success of Tesla’s management operations is largely
dependent of the effective running of the set organization structure in supporting the management
strategies and goal implementations amongst all the workers of the company. This paper will give a
study of the organizational structure used by Tesla, the effective of this structure and recommendations
on improving the company’s performance (Puranam & Maciejovsky, 2017).
Function-Based Hierarchy in Tesla
The functional-based hierarchy is the most outstanding feature of Tesla’s organizational
structure. This is a characteristic in running both the central operations and the divisional units set
across the globe. The Functional hierarchy is designed in a way that hierarchical management teams and
offices use to manage and run local and international operations. This type of organizational structure is
typically applicable when using the traditional corporate structure in situations where the management
and leadership of the organization are required to maintain a strict managerial control to run its
operations. Tesla is under the leadership of Elon Musk who is the topmost and chief decision maker in
the organization and a set of hierarchized management teams, technicians, and laborers at the bottom
of the hierarchy (DENG, 2018).
Centralization
The function-based hierarchy in the company succeed courtesy of the centralization strategy.
Centralization in U-form traditional corporate organizational structure employs centralization to put
emphasis to control managerial activities across the company and its global units. The running of the
company follows the decisions undertaken by a central group or team. This way, the heads of the
various company offices and global units act as the central decision makers and ensure efficient
implementations. This way, the company offers the needed supports for the autonomy of its regional
and overseas operation units. As a result, the company is able to execute a uniform strategy right at the
center of its operations and the peripheral units. This is what makes the company’s operation unique
compared to the operations of other players in the field (Pride, 2017).
Divisional
Tesla Company has a unique organizational culture. Unlike most of the companies in motor
vehicle production, the company may appear devoid of any form of organizational culture. The company
does not have public list of senior leaders. Nevertheless, the company has its operations divided into
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