After Extensive Job Cuts to Reduce Costs, Upper Level Managers

question 2

Multiple Choice

After extensive job cuts to reduce costs, upper level managers are spending significant amounts of time solving problems in the production units. Lower level managers are resentful that they cannot make decisions for their own units. What recommendation would you make for this firm?

• A) Reorganize; departmentalize around customers instead of products.
• B) Formalize; write explicit job descriptions, rules, and procedures so the upper managers won't have to decide each case individually.
• C) Centralize; create a department that does nothing but make decisions.
• D) Decentralize; give authority to the lower level managers regarding events in their own units.

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Definitions:

Leading Importer

A country, region, or business that is the largest buyer of goods from other countries or regions.

World's Leading

A term often used to describe a company, product, or service that is recognized as the most successful, advanced, or highest quality in its field on a global scale.

Trade Feedback Effect

A phenomenon where an increase in exports leads to an increase in national income and, consequently, an increase in imports.

Economic Flows

Refers to the movements of funds that reflect economic activity, including the flow of money within and between countries, such as trade, investment, and financial transactions.