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Unformatted text preview: ) ● These two structures can be a combination of the general forms already discussed ● Might consist of product divisions intersecting with functional departments ● Or geographical regions intersecting with product divisions Advantages: It typically facilitates information flow throughout the organization It can enhance decision making­quality because the organization considers both intersecting perspectives in making key decisions It is best suited to a changing and complicated business environment It can facilitate the flexible use of human resources Increases communication and coordination Disadvantages: It often makes performance evaluations more complex because employees usually have two bosses It can inhibit the organization’s ability to respond to changing conditions quickly It can diffuse accountability Conflicts can occur when the firm attempts to integrate the differing perspectives and objectives of intersecting units Violates the “unity of command”; multiple bosses Multinational companies frequently use matrix organization structures because although economies of scale for global product, division, or even customer structures are compelling, regional differences relative to governments, cultures, languages, and economies are also strong • Difficult to manage...
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