The duplication of activities between the corporate level and the operating level will be eliminated, thereby reducing complexity within the Group. The integration of administrative functions will result in shorter, faster and leaner reporting channels and decision making.
As we can see from the main points,the firm innovate the new management style, which is a bit different from previous structure, they pay more attention to the HR management department, Mercedes-Benz trying to use the internal recruitment it will help in the long term save money.So this method means what instead of hiring consultants and training managers from other paces, the Board of Directors can pick out one of the most experienced workers who worked for Mercedes and have all the basic and complicated knowledge of this structure of their company.It reduces costs in the long term by.for example reducing wastage and poor-quality work, and increasing workers productivity.And also they will get advantages such as:The emoloyees ability are known already, internal promotional opportunities are motivating for the workforce, and also it reduces the risk of employing the wrong person.Also to improve quality of the products and satisfaction of customers, they decided to create a new department. In order to react faster to changing market conditions, we have more closely integrated the organization of our research, predevelopment and development departments and pooled their resources. Responsibility for product development at the Mercedes Car Group has been integrated into the newly created Board of Management area “Group Research and Mercedes Car Group Development”. But here some bad things about new management strategy, this will lead to a total reduction of up to 20% in the number of persons employed in administrative departments during the years of 2006 through 2008, equivalent to approximately 6,000 jobs worldwide.
As we all can see what the innovation of new management style, brings a lot of benefits for the company. That scheme will save money in the long term, which is important factor because the firm everytime needs more money to invest them into designing a new models, for promotional needs, to create new dealerships. The Mercedes Car Group, comprising the brands Mercedes-Benz, Maybach, smart, Mercedes-Benz AMG and Mercedes-Benz McLaren, sold 1,251,800 vehicles in 2006 (2005: 1,216,800). Revenues of €54.6 billion were 9% higher than the prior year’s level. The Mercedes Car Group recorded a particularly sharp increase in profits in the year 2006 and the managers linked such a good results with new successful changes in the management style. Due to the market success of its new models such as S-klasse, C-Classe.Gl-Class, R-Class and CL-class, the Mercedes Car Group increased its unit sales by 3%.As a result of the anticipated production volumes and productivity advances, Mercedes-Benz assumes that compared with the end of 2006, the size of its workforce will continue to decrease during the planning period of 2007 through 2009.