Proper Organization of a Company

An organized company is typically the most efficient and most successful companies. When a company sets goals and they're organized, it is easy to identify what employee positions need to be involved in order to achieve the goals and how to achieve the goal. Since Yahoo! is such a large company I think the matrix departmentalization would be the most efficient structure. The article about Yahoo! made it sound like the company was overwhelmed with the size therefore had no control and no organization. Some of the biggest challenges the company is faced with is speedy growth, organizational complexity, and the fast paced changes of the internet. The reason why I think the matrix departmentalization would be most beneficial for Yahoo! is because an advantage of this structure is allowing companies to efficiently manage large and complex tasks, which is what the company faces. Another advantage of this structure is that it gives more diverse set of expertise and experience, which Yahoo! would benefit from especially since at one point in time they didn't even have a direct sales unit.

With centralization authority, managers make most decisions, even the small ones and this could have advantages and disadvantages. Some disadvantages would be that the managers would have a larger workload since they make every decision for the company. Putting every decision in the manager's hands might also may not make the other employees feel like they are important to the company so they won't be motivated to complete tasks. Some advantages of centralization would be since the managers make all the decisions they are constantly in control and aware of everything going on in the company. An advantage of decentralization would be splitting up the levels of organization. Dividing different tasks would be beneficial because getting many peoples point of view on a decision for a company is usually more efficient. A tradeoff of decentralization could be communication