Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?
A) Functional
B) Cooperative M-Form
C) SBU form
D) Competitive M-Form

Question

Quizplus · Accepted Answer

The SBU (Strategic Business Unit) form is a structure that allows for decentralized decision-making, with each operating unit having its own set of strategic objectives and financial goals. This allows for both strategic and financial controls to exist within the operating units and for headquarters to evaluate their performance based on financial controls. This structure also allows for greater flexibility and responsiveness to market changes, as each operating unit is able to adapt to its specific environment. The other options (functional, cooperative M-form, and competitive M-form) do not prioritize both financial and strategic controls in the same way as the SBU form.

Which Organizational Structure Will Emphasize Financial Controls for Headquarters' Evaluation