Senior management of a large multinational corporation isplanning to restruct the organization. Currently, the organizationis decentralized around geographic areas so that the executiveresponsible for each area has considerable autonomy overmanufacturing and sales. The new structure will transfer power tothe executives responsible for different product groups; theexecutives responsible for each geographic area will no longer beresponsible for manufacturing in their area but will retain controlover sales activities. Describe two types of resistance seniormanagement might encounter from this organizational change. Theanswer to this question should include direct costs as one type ofresistance to change among the geographic executives.
Expert AnswerÂ
A
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