Management

Senior management of a large multinational corporation is planning to restructure the organization.  Currently, the organization is decentralized around geographic 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 in their area but will retain control over sales activities.  Describe and evaluate two types of resistance senior management might encounter from this organizational change.  Also consider what management response should be.

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