PMC AG

If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on PMC AG. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality PMC AG paper right on time.

Our staff of freelance writers includes over 120 experts proficient in PMC AG, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your PMC AG paper at affordable prices!

PMC AG is a German company which chief manufactures are high-priced sports cars. It was founded in 10s and began to develop in 160s. At its early period, PMC AG just was a small consulting engineering company. In 148, PMC AG started to assemble the parts and engine for other companies. By 160s, however, the president of PMC AG decided to design and produce its own products, this unfolded a new era of PMC AG. In 186, the year of highest production, PMC AG sold 54,000 cars which nearly two-thirds sold in North America. After the heyday in mid-180s, PMC AG began to go down gradually and hobbled in swamp in whole 10s.

Obviously, from 160s to 180s PMG AG's structure adapted to the situation of that time which was a traditional hierarchical structure. By taking a glance at its structure, we could perceive the structure of PMC AG was extremely complex. (See figure 1.1) There were various levels in PMC AG. The more vertical levels in the hierarchy, the more division of labour here in an organisation (Bai,W., 00). Each group of employees here had a specific job and clear responsibilities, they were appointed base on their relevant skills and abilities.

Moreover, PMC AG relied on rules and regulations very much. Say, in most large organisations, this division is highly formalised (Walker.D.W, 18). The employees of PMC AG worked exclusively in one department. It was almost considered rebellion if an employee moved into another department without permission.

The span of control of PMC AG was narrow. It means few subordinates a group leader or a supervisor directed. In PMC AG, for example, there were 48 group supervisors and 6 supervisors, only two supervisors a group supervisors managed.

Also PMC AG was entirely centralised. A lower level employee had to report the higher level one. For instance, frontline employees reported to work group leaders, who reported to supervisors, who reported to group supervisors, etc. It implies that the decisions passed through a contrary order, e.g., President informed vice presidents, who informed production directors, etc. Nobody could make decisions except President.

Furthermore, PMC AG was divided into process departments representing different phases of the production process including upstream and downstream activities.

Figure 1.1 The vertical hierarchy of PMC AG

Above structure is illustrated that guided PMC AG to success after 10s. However, what kinds of factors leaded it toward fail?

A Chinese proverb says Water can carry the boat; also can sink it as well. The structure, which drove PMC AG to success, also was the root of fall. PMC AG's structure was not changed though the situation and environment had altered significantly. German mark appreciated against the USD, highly compete with Japanese cars, even the North American recession hit, all of them aggravated PMC AG's tension. PMC AG was defeated by its unadaptable structure and some external factors.

The main problems can be found are high cost and low productivity. How to deal with these troublesome factors and make PMC AG as profitable as previously? Obviously, PMC AG should renovate its structure because structure is clearly important for any organisation, whatever its size (Mullins, L.J, 16).

Firstly, PMC AG should reduce the vertical hierarchy. It means make PMC AG's structure less complexity. From figure 1.1 we can see there are too many vertical levels in the hierarchy. The communication between President and frontline employees tend to be more difficult. Information that was sent by President needed pass through vice presidents, directors, managers etc., then might be received by frontline employees. It is extremely inefficient in terms of time. Therefore, PMC AG should reduce some vertical levels to improve the production efficiency.

Secondly, PMC AG should be decentralised. It implies some authorities should be given to the low level staffs such as supervisors, group leaders, etc. in order to increase the productivity. For instance, one of a group leader here planed to work overtime someday owing to something urgent, he or she can make this decision directly without the permission from the supervisor or director, because he or she had been already assigned this right. Thus, each staff should have a certain authority to direct his or her subordinates, and passing the information need not throughout the hierarchy.

Next, PMC AG needs a flexible structure, that is to say, remove some rules and regulations, such as no communication with two different departments. Without communication, the collaboration between employees tended to be difficult. Therefore, the staffs should strengthen the collaboration by communication or informal communication. Moreover, the collaboration should be not only horizontal, but also the vertical in order to improve the efficiency in terms of both cost and productivity effectively.

Then, PMC AG should widen the span of control. The wider spans, the more subordinates a supervisor can manage. Thus, less directors or supervisors are needed. The salaries of directors or supervisors tend to be higher than the employees'. So, wider spans are more efficient in terms of cost. Moreover, the employees here are experienced and well-trained, it provided a good foundation that widening the span of control might work well.

Finally, it had better to change its departments from process to customer. PMC AG is supposed to understand the customers' needs very well. Customer means market, if the company lose the customers, it lose the market as well. Therefore, PMC AG should realise what kind of car are the majority fond of? Then produce them accordingly in order to match the customers' needs and occupy the market.

To sum up, within a dynamic and uncertain environments, PMC AG should change its structure from a mechanic organisation to an organic one (Bai, W., 00). Moreover, less complexity, flexible, low formalisation, wider span of control and decentralised decision authority are the noticeable features of an organic organisation style. Consequently, the new structure of PMC AG ought to "flatter" than former one

Please note that this sample paper on PMC AG is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on PMC AG, we are here to assist you. Your cheap custom college paper on PMC AG will be written from scratch, so you do not have to worry about its originality.

Order your authentic assignment from and you will be amazed at how easy it is to complete a quality custom paper within the shortest time possible!