Abb Organization Structure Essay

1094 WordsMay 15, 20125 Pages
Question one. The reasons for Barnevik to choose such a complex organizational form are: Both BBC and ASEA had matrix organization prior to the merger hence Barnevik thought that Matrix structure to be a logical choice for new organization ABB. He also thing that matrix structure will allow ABB to ‘think global, act local Dealing with large public and private customers. Barvenik was the one who had articulated a strategic vision for ABB. He believe that new technology and economies of scale required to meet the new demand can only be developed by ABB operating on a global scale. He make a strategy to build the company that could exploit these two major industry trends in order to achieve these he thing matrix would be solution despite failed in the past. He was focus on big changes that new organization structure will allow the ABB to manage three contradictions which are: to be global, to be local and to be big and small. Another reasons was radically decentralized with central control which adopted by ABB will suited with Matrix structure. Other reason of barvenik to choose matrix are: He think matrix will ensure accountability, transparency and integrity of the managers, Matrix will provide good channels of communications from top to the base and base to the top. However we should know that the matrix organization structure itself, solve nothing, it is how people work together in the matrix organization that makes it succeed or fail and often this is the neglected bit. Therefore choosing competent personnel is the key factor to success .To achieve the best organization structure ABB has undergo different structure which suit the ABB organization as shown in (exhibit 1 from figure 1-4). Question 2 The organization structure has been design to shape the role and responsibilities of the frontline where the key drivers of the business performances in ABB:

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