Detroit Electric

1. According to Ivancevich (pg. 491), Matrix structures are found in organizations that (1) require responses to rapid change in two or more environments, such as technology and markets; (2) face uncertainties that generate high information-processing requirements; and (3) must deal with financial and human resources constraints. Matrix organization facilitates the utilization of highly specialized staff and equipment. With that being said, Detroit Electric portrays the matrix model of organizational design. Detroit Electric doesn't design or build the cars. Their subsidiaries Advanced Propulsion and Electric Energy produce the motors and batteries, respectively. The actual manufacturing of the car is outsourced to Proton Holdings. Proton Holdings builds the cars under the Detroit Electric brand. Matrix organizations typically see a balanced compromise between functional and product organization. Detroit Electric choose Proton Holdings due to their production facility, commitment to research & development, cost efficiency, and stable, high-quality workforce, hence the compromise between functional and product organization.

2. Ford exhibits a Functional Departmentalization Structure. Ivancevich (pg. 488) states that a major disadvantage of the functional departmentalization is that because specialists are working with and encouraging each other in their areas of expertise and interest, organizational goals may be sacrificed in favor of departmental goals. The following organizational structure was that of Henry Ford's plants, according to Organizational Structure found in the Encyclopedia for business, 2nd Ed.

With this structure, there are at least three managers within a department or division. Each of these managers can have conflicting goals and ideas within their division and with other managers of other divisions. When Ford wanted to introduce the electric car to their product line they had to communicate and work in the order of the chain of command, working with the many managers. Whereas when Detroit Electric wanted to develop the electric car, they obtained personnel from the functional departments such as research, engineering, production, and marketing. Those personnel then worked under the manager of the product group. These personnel are responsible to two managers instead of the many in the Ford structure.

3. One issue that may arise from the cooperative agreement of international companies is that it may result in the reliance upon organizational designs and management practices that are simply unsuitable for the environment of that country. Another challenge that must be addressed is how to include foreign activity. Organizational researchers must provide data to help better understand the degree of similarity and differences across national boundaries that has implications for organizational operations, Ivancevich (pg. 501). How business is conducted can