Chapter 8, Problem 22AA

To determine

To evaluate: the three problems in a corporation that might be caused by its complex corporate structure.

Explanation of Solution

A complex organization requires a broader organizational structure, or more resources, within each company, project or department. The uncertainty can be caused by various stakeholders, different organizational structures or multiple steps involved in a process. Despite of the dynamic organizational structure, some of the challenges are Sluggishness. When there is a strike, the proprietor mobilizes the staff. Add-on complicity slows things down.

Poor communication and feedback is another concern. When it is complicated enough a company has to organize the job into divisions. This affects the coordination as employees are separated, in particular when the organizational structure includes whole divisions divided by distance.

Some of the difficulties include so lack of knowledge, building a good organization requires hard work and a deep understanding of the environment and the atmosphere in which a business works.

Economics Concept Introduction

Introduction:  Corporate organization implies the arrangement of various business units or deparments within a company. Corporate structure can differ greatly between companies, depending on a company's goals and the industry it operates in.