When the people managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate to them, this type of crisis is called
A) a crisis of autonomy.
B) a crisis of confidence.
C) a crisis of clarity.
D) a crisis of differentiation.
E) a crisis of leadership.

Question

Quizplus · Accepted Answer

A crisis of autonomy occurs when lower-level managers feel they need more decision-making freedom than top management is willing to give them. This can be particularly challenging in a functionally structured corporation where managers may be responsible for overseeing multiple product lines or divisions. If they feel they don't have the autonomy to make important decisions, they may struggle to effectively manage these different areas. A crisis of confidence, on the other hand, would typically refer to a loss of faith in the company (either internally or externally), while a crisis of clarity might refer to confusion around goals or strategies. A crisis of differentiation would arise if the company was struggling to differentiate itself from competitors, and a crisis of leadership could refer to a lack of effective leadership at any level of the organization.

When the People Managing Diversified Product Lines in a Functionally