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Ecotours has experienced remarkable growth in recent years. To effectively manage this expansion, the company's management made significant changes to its organizational structure. They recently
Ecotours has experienced remarkable growth in recent years. To effectively manage this expansion, the company's management made significant changes to its organizational structure. They recently adopted a divisional structure based on geographic regions. Now, the management team is contemplating another organizational shift. They are considering a matrix structure with geographic regions in one dimension and key product lines in the other dimension. Despite the potential benefits, some senior managers express reluctance, as they are mindful of the risks associated with hastily implementing a matrix structure. Which of the following would be a significant risk if Ecotours moves to a matrix structure? a dia Unless decision-making becomes more decentralised it is counter-productive to move to a matrix structure. The matrix structure may avoid competing demands across geographic markets and products. A matrix structure fosters an organisational culture where employees act only when authorised and directed by senior managers. Operations personnel may not have the talent and skills required to deal with dual-hierarchy. The matrix structure may cause confusion around strategic priorities and profit planning
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