A Centralized Management Style, Where Major Decisions About a Foreign

question 39

True/False

A centralized management style, where major decisions about a foreign subsidiary are made by the parent company, results in an increase in agency costs.

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Definitions:

Informal Communication

The exchange of information, ideas, and knowledge that occurs outside of formal communication channels, often spontaneously among colleagues.

Functional Structures

Organizational configurations that group together employees who perform similar functions or tasks.

Dysfunctional Conflict

A type of conflict that hinders organizational performance, disrupts operations, or negatively impacts interpersonal relationships.

Departmentalization

The method an organization uses to divide its operations and functions into manageable sections based on task, geographic location, product, or service.