case analysis - Case Analysis A New Caterpillar Emerges...

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August 31, 2011 Case Analysis A New Caterpillar Emerges Organizational structure is a very important part of any business in order to receive maximum profits. Without some type of structure there would be chaos and a dysfunctional organization. The main function of Caterpillar is to make equipment used in the construction industry. If they were to stop producing these products, the industry would be devastated. In this case study I will discuss the problems of Caterpillar’s old organizational structure and why it was change to improve its effectiveness. I will now discuss the problems of the old organizational structure within the Caterpillar Company. Since it lacked the structure needed the productivity was at its minimum levels. The decision making process was made from those in upper management and then sent to those producing the products. They had no hand in the actual making of the product. The functional managers didn’t know how to communicate and coordinate correctly which resulted in the lower
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