I’m working on a business discussion question and need an explanation to help me understand better.
The higher management of a large multinational corporation is planning to restructure the organization. Currently, the organization is decentralized around geographical areas so that the executive responsible for each area has considerable autonomy over manufacturing and sales. The new structure will transfer power to the executives responsible for different product groups; the executives responsible for each geographic area will no longer be responsible for manufacturing but will retain control over sales activities.
Answer the following questions.
Will the higher management of corporation encounter any resistance to this restructuring? If yes, what type(s) of resistance?
Suggest to management as to how they can make this change effort successful.
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