The biggest challenge in making a decentralized organization function effectively is to obtain goal congruence among the organization's autonomous managers.

Question

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In a decentralized organization, ensuring that the goals of autonomous managers align with the overall objectives of the organization is crucial for effective functioning. This is because decentralized organizations grant autonomy to various managers or units, which can lead to divergent objectives if not properly aligned through mechanisms like performance metrics, incentives, and organizational culture.

The Biggest Challenge in Making a Decentralized Organization Function Effectively