General Management

General Management

Answers for Dow Chemical case study:

1. Why did Dow Chemical first adopt a matrix structure? What benefits did it hope to derive from his structure?

Ans: Dow Chemical first departmentalized matrix structure because; there is a communication flow in between all the departments due to the dual interaction. In addition, the matrix structure promotes organizational flexibility, which allows a company to take advantage of functions, productions, and geographical elements as needed. In this contest, Dow’s intention was to operate both local and global
(corporate) requirement at a time through this flexible practice.

2. What problems emerged with this structure? How did Dow try to deal with them? In retrospect, do you think those solutions were effective?

Ans: The first problem emerged with this structure at Dow was the confliction and confusion due to multiple reporting by the managers to their seniors. Each manager has to report minimum two bosses in each functioning area. Due to which, the production lessens as per the estimation of the company and neighbourhood conflicts caused inside the organization.

To control this confliction and internal inconvenience Dow first created a small team of senior officers at the headquarters to set the priorities of each business. After identifying the priorities, one of the three essentials of the matrix – function, business and geographic area – was given chief authority in decision making. Which essentials took the diverse according to the sort of verdict and the geographic area in which the business was competing. Such flexibility that all employees comprehend what was happening in the rest of the matrix. However, this was somehow different, but the Dow was being benefited by this practice.

3. Why did Dow change its structure again in the mid 1990s? What was Dow trying to achieve this time? Do you think the current structure makes sense given the industry in which Dow operates and the strategy of the...