Ebay Case Study Analysis
This case analysis provides an overview of the tactical approach that eBay applied to have as well as keep a competitive …show more content…
With the matrix structure, it overlaps both the functional design, which is what Omidyar initially started out with and the divisional design. Within the matrix structure method, employees belong to at least two groups at the same time. For example, within the functional areas Omidyar set up initially, someone in finance could have knowledge and work in the operations division of the company and vice versa. The workers would also report to two supervisors – one within the functional group and the other within the team.
This structure not only spreads employee enthusiasm, but it also allows practical and overall executive training across all operative areas as well. Although there are several advantages and disadvantages, like in any other organization structure one major advantage of running on the matrix is the greater responsiveness to customers from bringing together information about customer needs and organizational capabilities (Bateman, Snell, & Konopaske page. 263 exhibit 8.10). On the other hand, one of the major disadvantages for running under this structure would be the possible conflict and stress for employees who must manage a dual reporting role (Bateman, Snell, & Konopaske page. 263 exhibit