Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 19

By the year 2000, General Motors had decentralized primary decision rights for designing cars to vehicle line managers. In earlier years, General Motors had a centralized corporate design group. This group maintained key decision rights for the designs of all GM models. Discuss the trade-offs between these two organizational arrangements.