Competitive Advantage For Maybank

In order to improve the organisation structure, Maybank should develop more project and research to create new innovations as there is enough expertise from different units. There should be more cooperation between the business, function and country units. Therefore, this will ensure the success of differentiation strategy which can be the competitive advantage for Maybank by creating more new services that different and better than other banks. Furthermore, Maybank should allocate a head for each of the three units. For example, there can be a head for each business, function and country units respectively to control and supervise the CEOs and officers in these units. Besides, there can be new additional unit added to the structure which is

Hybrid departmentalization can bring advantages when there are combinations of different expertise from different departmentalization. This will create efficiency and innovations because both functional and divisional departmentalization shares the authority and effort and will lead to adaption of new trend and meet customers’ need and wants. Therefore, the differentiation leadership strategy which used by the Islamic banking and Insurance & Takaful business units were best matched the structure of Maybank because hybrid structure can offer a huge scale of different services and products for customers where many new projects and innovations can be developed. Besides, Maybank Investment Banking which is the subordinates of Global banking business unit which uses the cost leadership strategy doesn’t match the structure of Maybank because hybrid structure will incurred a higher overhead because many manager position were created will result to high labour cost and difficult to provide low cost to customers. Economist of scale will be difficult to achieve as hybrid structure consist of more differentiation of units which difficult to provide low cost

In term of assigning authority, Maybank operate in the form of decentralization. Decentralization organizational structure is having several managers or officers to make decision and run their business unit. Decentralization was used because Maybank has a many departments and subordinates where many CEOs were assigned to run the business units. For examples, the Group head global bank business unit is responsible for the overall Global Banking growth, overall strategy and performance while the group head, community financial service CEO, Maybank Singapore is in charge of the overall performance of the CFS business which include for business banking, consumers and SME segment. On the other hand, chain of command is referring to a company’s reporting relationship. It is the authority of the top manager to direct control the units below them which define who will report who. Span of control refer to the number of subordinates that a manager has direct control and supervise. Maybank possess a low and narrow span of control because there are 13 CEOs in controlling different subortinates in business, function and country units and at the bottom of these three