In a divisional structure:
there is a centralized corporate office and under it, are various divisions each of which is dedicated to producing and/or selling a certain type of business or product, e.g., product 1, product 2, etc.. Each division that is dedicated to a certain business or product is, in turn, is organized as its own functional structure. So, for example, the division dedicated to making product 1 has its own sales department, human resources, etc. Basically, the divisional structure is a bunch of functional structures each of which reports to one central office (http://www.mapnp.org).
We can see in the company's reliance on some regional responsibilities an incorporation of some traditional divisional structural ideas (http://web.mit.edu).
In the matrix structure that Megabyte Global is contemplating, the new primarily matrix form of organisation will seek to provide a "new, single, global organisation." This kind of thinking is at the heart of matrix business organisation (http://www.apqc.org).
Members of [a matrix] group stay together until that product is produced or they continue to sell and service it. This overall structure (made up of a functional structure that also has groups assigned to products) is a matrix structure. This structure is useful because it focuses highly skilled people from across the organization to work on a complex product or service. It can be difficult, though, because each person essentially reports to two supervisors: the supervisor of the functional area (e.g., engineering) and the product manager, as well (http://www.apqc.org).
No company that refuses to change with the times will succeed for long, but neither is it wise to embrace new forms of organisation simply because they are new. Megabyte Global is wise to combine new and old ways of structuring a business, taking the best from both.
What advantages and disadvantages will the matrix form of organisation present to Megabyte?
The...
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