Decision-making in a multinational manufacturing organization

Abstract

Research Objectives This thesis research was conducted for the operational development department of a multinational manufacturing company as a part of their operational excellence development program. The purpose of this study was to identify inefficiencies and development potential regarding decision-making in one of the business divisions of the case organization. During the research accountability and responsibilities of the employees were studied. The aim was to support the operational excellence development program and to provide managerial recommendations.

Methodology This research was conducted as a qualitative single case study with 26 semi-structured thematic interviews. The interviewing served as the main method for data collecting. Additionally selected company materials provided background information. The interviewees were chosen through purposive sampling. The results were analyzed through analytic induction.

Research Findings Successful transformation, from product orientation to solutions and systems integration based customer centric business, requires re-evaluation of the current corporate structure, decision-making culture and processes. Moreover, extensive training is needed to secure the shared ways of working, while embracing the targets related to the new strategic goals. Currently, the case organization is suffering from role ambiguity, lack of accountability, and silo focus. The root cause for many of the challenges is the complex structure. The company is aiming to leverage the resources of small and task-oriented units, but is facing difficulties due to lack of co-operation between the silo-focused units and functions.