The control issue in managing the multidivisional structure is
A) how much authority should be centralized at corporate headquarters.
B) how much authority should be decentralized to the divisions.
C) how much authority should be given to each functional unit.
D) how much authority should be centralized at corporate headquarters and decentralized to the divisions.
E) how much authority should be given to corporate division heads.

Question

Quizplus · Accepted Answer

The control issue in managing the multidivisional structure is how much authority should be centralized at corporate headquarters and how much should be decentralized to the divisions. This balance is essential for ensuring effective control and coordination across the organization. While too much centralization can lead to slow decision-making and inflexible operations, too much decentralization can result in a lack of consistency and coherence across the different divisions. Therefore, finding the right balance between centralization and decentralization is critical for the success of a multidivisional structure.

The Control Issue in Managing the Multidivisional Structure Is