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Abb Case Analysis

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ABB Power and Productivity for a Better World COMPANY BRIEF ABB (Asea Brown Boveri) was formed in 1988 by the merger of two companies: the Swedish company ASEA and the Brown Boveri of Switzerland to create a global electrical engineering giant. Percy Barnevik (of ASEA) was the chief executive and master mind of the restructuring process that integrated both the companies. * In your opinion, was the organization structure chosen for Asea Brown Boveri by Barnevick appropriate? The Organisation structure chosen for Asea Brown Boveri is the Matrix form of organisation structure. This form of organisation structure creates dual lines of authority and combines functional and product departmentalization. Advantages provided by this model: …show more content…

* Ensuring greatest level of work satisfaction and optimal operational efficiency: The organizational structure should ensure job significance and also give a sense of autonomy/empowerment to the employee. This creates a high level of internal job satisfaction and ensures high operational efficiency. * Optimum ratios of supervisors to subordinates : This ratio needs to be maintained at the optimum level in order to avoid overhead of duplicity in monitoring and overstressed levels of monitoring. Conclusion It is very difficult to predict as to whether the organisation has chosen the right structure or not since the effective implementation of the organisation structure depends on the people. However, technically speaking, this is the most suitable organisational structure for the company given its complexity and globally spread out

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