Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?
A) Functional structure
B) Cooperative M-Form
C) SBU Form
D) Competitive M-Form

Question

Quizplus · Accepted Answer

The SBU (Strategic Business Unit) form is designed to give more autonomy and strategic control to each operating unit while still maintaining financial control at the headquarters level. This is achieved by dividing the organization into semi-autonomous units or SBUs, each responsible for its own profits and losses. The headquarters will focus on evaluating the financial performance of each SBU while the operating units will emphasize strategic controls within their units' performance.

Which Organizational Structure Will Emphasize Financial Controls for Headquarters' Evaluation