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The Appointment of a New Chief Executive at Procter

Question 52

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The appointment of a new chief executive at Procter & Gamble sparked broad management changes. He planned to reduce the levels of management between entry-level positions and the chief executive. The CEO planned to "create a simpler, flatter and more agile organization," he said. "This is a priority because simplification reduces cost, improves productivity, and enhances employee satisfaction."
1. Is organization structure related productivity and job satisfaction? Explain
2. What resistance to change might the CEO encounter?

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