According to the text,organizational designers in the IC must be aware that the gain that is achieved from increased specialization of labor may sometimes be nullified by
A) the increased cost of geographic expansion.
B) the increased cost of coordination.
C) the increased cost of product development.
D) increased costs from unionization.
E) increasing costs of marketing and branding.

Question

Quizplus · Accepted Answer

What are the main issues to consider in designing an international company's structure? Two that management faces are (1) departmentalizing to most effectively take advantage of efficiencies gained from specialization of labor and (2) coordinating the resulting departments' activities to meet the firm's overall objectives. As all managers know, these two goals can conflict with each other; that is, the gain from increased specialization of labor may sometimes be nullified by the increased cost of coordination. The search for an optimal balance between them often leads to a reorganization of the IC's structure.

According to the Text,organizational Designers in the IC Must Be