Analysis of People Management Strategies at Mercedes Benz Malaysia

This report provides an analysis of people management practices within the Mercedes Benz Company in Malaysia. It examines the company's organizational structure, which is characterized by product-based departments and a hierarchical management approach comprising executive, managerial, and operational levels. The report highlights the specialization among working groups, the interdependence of employees, and the use of lateral and downward communication systems. It also discusses the integration of shared objectives and IT modifications to improve strategic management. Furthermore, the report explores how the company's structure, encompassing work specialization, departmentalization, and formalization, contributes to its success in the Malaysian market through high-quality sales and after-sales services. The conclusion emphasizes Mercedes Benz's commitment to delivering quality cars through an efficient organizational structure and effective communication channels.

People Management in Organisations1
People Management in Organisations
Student’s Name
Institutional Affiliation

People Management in Organisations2
People Management in Organizations.
Mercedes Benz Company is the best luxurious car producer in Malaysia .It has a leading
premium car brand for several years in Malaysia. It’s the most valuable European premium
automotive with the best ranking here in Malaysia. Mercedes Benz holds a heritage since the
twentieth century in Malaysia as it’s dedicated in supporting their customers ("Mercedes Benz
Success story", 2019). Currently, the Mercedes Benz Company in Malaysia has employed more
than four hundred and twenty employees in administrative roles, sales and software development
.Due to this it faces extreme alignment, communication management and engagement to the
work force. This paper will analyze hierarchy, structure, integration and control of the Company
in Malaysia.
Conceptually, the Mercedes Benz Company operates business using product departments
and segments based on an individual area of specialization. Through the departmentalization
high level of specialization is boosted as specialists are teamed into their functional
specialization areas (Sultana, Hashim, & Shafii, 2016). For instance, there is a team that is
assigned specifically with assembling of engine parts while the other team is tasked with
assembling the body. Company operations are guided by a hierarchical management approach
which consists of executive, managerial and operational levels (Chemendy, 2018). For instance,
the topmost position is the chief executive officer is the president then managers to the
engineering and technical team. Organizational levels are designed in a way to enhance that each
and every decision that is made at each level has got its right level of authority to the people. The
segmentation of authority and areas of expertise ensure that the top management authority in the
company focus on the most strategic decision making also empowerment of the specialist on the
way to adapt accordingly to the trends in the automotive markets to avoid being outdated.

People Management in Organisations3
The Mercedes Benz Company in Malaysia has high specialization among the working
groups. The workers have high interdependence towards each other at achieving high goals in
the organization. It’s characterized with lateral and downward coordination communication
system. Through control of different teams in the organization is enhanced through a matrix
model where it involves both horizontal and lateral coordination (Winnubst, 2017). For instance,
the sales team in the industry directly reports to the sales manager about sales statistics then the
report is sent to the marketing manager so that to evaluate possible sources for sales decline. So
the marketing manager comes up with a strategic advertisement and schemes to upsurge the
number of sales. In order to curb the challenge Mercedes Benz Company in Malaysia has
incorporated the concept of shared objectives so that reduce the ambiguity of the functional areas
in the organization. The alignment of IT related modifications in the company have allowed the
development of strategic management to the workers without thus the work is made easier and
perfect. For instance, incorporation of cameras in assembling rooms makes the work easier for
mangers and accurate for the technical team.
The structure of the Mercedes Benz Company in Malaysia is based on its long term goals
on how to achieve greater profits through maximization of every opportunity available. The
company structure involves work specialization, departmentalization, the chain of command and
formalization (Mohammed, 2019). Thus, the company has integrated unique organizational
strategies which suit to high growing markets in Malaysia through provision of high quality sales
and after sales services for both Mercedes Benz passengers and commercial vehicles. The
operations that are involved in the Mercedes Benz Company in Malaysia are purely car
production which exists in separated divisions and so specialization and departmentalization
becomes applicable.

People Management in Organisations4
In conclusion Mercedes Benz holds a core mission of ensuring that it delivers quality cars
in the industry. The company has designed a structure that incorporates work specialization,
departmentalization, and formalization so as enhance the decision making the process easier.
Additionally, it has a single hierarchical order of the management. It's designed to offer the right
authority to the working team within the company. Lateral and downward coordination and
communication are enhanced so that to ensure the smooth running of different departments. The
company has aligned information technology modifications within the company; thus the
development of strategic management.

People Management in Organisations5
References
Chemendy, N. (2018). An evaluation hierarchy and capacity planning processes–A qualitative
case study on completely-knocked-down vehicles at Mercedes-Benz Cars (Doctoral
dissertation, Stellenbosch: Stellenbosch University).
Mercedes Benz Success story. (2019). Success Story. Retrieved from
https://successstory.com/companies/mercedes-benz
Mohammed, A. (2019). Organisational Analysis &Design. Prezi. Retrieved from
https://prezi.com/gfvri-4shn03/organizational-analysis-design
Sultana, M., Hashim, M. H., & Shafii, S. (2016). Prominence of new Luxury car sales in
Malaysia. In MATEC Web of Conferences (Vol. 74, p. 00008). EDP Sciences.
Winnubst, J. (2017). Organizational structure, social support, and burnout. In Professional
burnout (pp. 151-162). Routledge.