Several Global Organizations Have Tried Implementing a Matrix Structure to Balance

question 103

Essay

Several global organizations have tried implementing a matrix structure to balance the power of its functional and divisional groups. However, many of these firms experienced problems and eventually switched to a hybrid form of divisionalized structure. Identify some of the problems that these companies may have experienced with a matrix structure.

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Definitions:

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.

Profit Margin

A measure of profitability, calculated as net income divided by revenue, indicating the percentage of revenue that exceeds the costs of goods sold.