To make their strategy successful, the company, eBay, would have to first establish an organizational structure. Like many of its consumers, eBay experienced a tremendous loss in 2008 due to the so-called Great Recession, which per State of Working America, was a major worldwide economic downturn that began in 2008 and continued well into 2010. By designing and developing an organizational structure that best fits their company, eBay could possibly turn the business and their sales around and begin to operate the business the way Omidyar saw it when he first launched the eBay concept back in 1995.
Evaluation
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
Evaluation
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