When the two giant power equipment companies Asea and Brown Boveri were merged to become Asea Brown Boveri (ABB), Percy Barnevik, the CEO of Asea, was asked to lead the combined operations and implement strategic plans. He “formed a 10 person management work group” and handpicked 300 key managers to form the manager team. He argued that ABB need to manage three contradictions-to be global and local, big and small, radically decentralized with central control. Although his broad vision seemed to be very attractive to any business organization, it is actually much easier to make such statement than to implement it (if the goal is actually achievable). I believe there are number of organizational problems within the company. If ABB wanted to continue to succeed in the market, several adjustments are necessary.
1)
First, Percy tried to put in place a very complicated matrix organizational structure to manage the company. Managers on the front lines were expected to act......
Join Now or Login to view the rest of this paper.
Approximate Word Count: 662
Approximate Pages: 3 (260 words per double-spaced page) |