Organizational Structure Paper

1238 Words Mar 8th, 2012 5 Pages
MANAGEMENT THEORY AND PRACTICE 1

Management Theory and Practice
MGMT/230

MANAGEMENT THEORY AND PRACTICE 2

Looking at the organizational function of management within the Bank of America Corporation. The Bank of America structure specifically relates to the physical assets and the monetary resources of the company and how financial realities can have a major impact on the management organization of any company. A matrix structure sets up teams from different departments, thereby creating two or more intersecting lines of authority. Also, matrix addresses issues that arise with the growth, diversification, productivity, and competitiveness in its structure. Matrix structures provide flexibility, enhanced
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MANAGEMENT THEORY AND PRACTICE 3

Physical asset management has been and continues to be a major source of growth for Bank of America. Such management has served as the proverbial engine behind any of the company’s expansion (Boraks & Moyer, 2004). For example, during the 1990s, Bank of America made efforts to expand its physical asset holdings by acquiring First Gibraltar Bank of Texas. During that acquisition, Bank of America gained roughly 133 branches and over $7.5 billion in associated and assorted assets (Zuckerman, 1992). This represents a major asset acquisition for Bank of America, an acquisition that demands a high level of management. It’s evident; however, from this that Bank of America has built its economic growth on a strong tradition of expansion through buying other companies’ market shares. With gaining some measure of financial success, the company seeks to solidify its economic position by buying out or merging with its competitors. This type of policy has presented problems for Bank of America because they must struggle with many of the bureaucratic and legal difficulties of managing such a large mass of physical assets and monetary resources. The larger the company becomes, the more prone it is to lawsuits, and the more trying it becomes to manage (Boraks & Moyer, 2004). Combined with the recent economic downturn of the market, Bank of America management has come to realize that large-scale acquisition

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