When the New CEO Is from Inside the Firm and a Heterogeneous

question 18

True/False

When the new CEO is from inside the firm and a heterogeneous top management team is in place, the strategy may not change, but innovation is likely to continue.

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Definitions:

Hierarchy of Authority

The ordered arrangement of individuals within an organization according to their levels of power or authority, usually from the highest to the lowest rank.

Rationality

The quality of being based on or in accordance with reason or logic.

Functional Structures

An organizational design that groups employees according to their specialized roles or functions, facilitating efficiency and expertise development.

Cost Containment

Strategies or measures implemented to control or reduce expenses within an organization or project.