Substitutability of the activities of a subunit and subunit power within the organization are negatively correlated.

Question

Quizplus · Accepted Answer

If the activities of a subunit are highly substitutable, then the subunit's power within the organization is lower because the organization can easily replace the subunit with another that provides a similar function. On the other hand, if the subunit's activities are highly specialized and not easily substituted, then the subunit has more power within the organization. Therefore, there is a negative correlation between the substitutability of a subunit's activities and its power within the organization.

Substitutability of the Activities of a Subunit and Subunit Power