Bayer AG clustered all of its business operations into six groups under an umbrella company called Bayer World. Each of these six groups have included several subgroups comprised of product categories such as as dyestuffs, fibers, or chemicals. At the same time, each of its administrative and service functions were placed under Bayer World into one of several functional groups, such as marketing, human resources, plant administration, or finance. In addition, top executives who had headed functional groups in the past, were given authority over different geographical regions, which, like the product groups, were supported by and intertwined with the functional groups. The final result of the new organizational structure divided the original nine functional areas into 19 multidisciplinary, interrelated business groups. The new organizational structure that Bayer AG adopted was a _____structure.

Question

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The new organizational structure of Bayer AG, which divided the original nine functional areas into 19 multidisciplinary, interrelated business groups, is an example of a matrix structure. This structure combines both functional and divisional structures by grouping employees by both function (such as marketing, human resources, plant administration, or finance) and product categories (such as dyestuffs, fibers, or chemicals). This allows for greater flexibility and cross-functional communication in decision-making and project management. Additionally, the appointment of top executives to oversee different geographical regions adds a further layer of complexity and integration to the matrix structure.

Bayer AG Clustered All of Its Business Operations into Six