caterpillar, the industrial equipment manufacturer, required all pricing decisions be made through the company headquarters in peoria, illinois. this meant that sales representatives working in africa had to check with headquarters to give a discount on a product, a process that could take time and create communication issues. as a result, caterpillar was at a disadvantage to competitors. this example shows the potential issues of what aspect of organizational structure?

Respuesta :

This example shows the potential issues of  centralization aspect of organizational structure.

What is organizational?

The word “organizational” refers to the structure and hierarchy of the workplace as well as the shared objectives of its participants. The word “organization” is primarily used in the workplace and in business contexts.

According to the statement are the based on the organizational structure are the centralization of the company. There was the creation of the miscommunication and the issues of the statement. It was the disadvantages of the caterpillar.

As a result, the example shows the potential issues of centralization aspect of organizational structure.

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