Abstract

The case discusses the matrix organization structure of the Switzerland-based ABB, a global electrical engineering company. It explains in detail the four management levels in the structure and clearly identifies the roles and responsibilities of the management at each level. The case also explains the rationale behind developing the matrix structure and the subsequent changes made in it till 1996. Finally, it discusses the positive as well as negative strategic and HR implications of the structure on the organization.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Structural elements in the matrix
• Their interrelationships and implications for the firm.

Keywords

ABB, Matrix organisation, Matrix structure, Organisation structure, Percy Barnevik, Restructuring, Reorganisation, Management levels, Customer-centric organisation, Decentralisation, Globalisation, Group organisation