Case Scenario: Tom glanced around the Boardroom, which was abuzz with around twenty international delegates who had flown in the previous evening. All were senior managers of Galaxy Music, an international record company and concert promoter. Big changes were underway at Galaxy, as Tom, the newly appointed worldwide President was pushing hard for greater centralization of the organization. Traditionally they had operated a decentralized, federated structure with geographic territories such as USA, UK, and Germany run as separate companies with enormous freedom. Each had the power to make their own decisions, in terms of which artist to record or tour, and which artists to support based on what had been developed as other operating companies. For instance, if Galaxy UK broke an artist in the UK, Galaxy Germany could choose to (or choose not to) promote the artist in Germany, receiving the revenue from German Sales and paying the UK company a royalty. Tom had recently imposed far greater centralized control which entailed the mandated requirement of promoting the same selected artist across all territories, a step which had angered some staff. Tom had called this meeting to convince them about the changes and how it will help the company but everyone was upset and in disagreement about being forced with such directives given that different territories prefer different artists and music.

Q 24: In order to accommodate the old style of working and the need for centralized efficiency, Tom should redesign the divisional structure to include both functional divisions and multiple divisional groups. Further, to include the expert opinions of the other branch heads, Tom should adopt a bottom-up approach that allows self-management to ensure the change and transition is smooth. So, Tom should adopt this divisional structure and this change model.

a)Matrix and CAS

b)Functional and AI