Product division too often treated the AM division as a captive customer.
The second focus of concern of the Abrams‘ top management was the behavior of part divisions, which captivated the AM division. Again, this is the consequence of Abrams Company organizational structure; the treat of divisions as profit centers, according to theory, will abdicate some control of top management since some decision makings authority are delegated to the lower level. This is the case in Abrams Company, where its division losing it synergy to reach companywide common goal. To overcome this problem Abrams Company needs to change its reward system, and plant managers will have a chance to raise its incentive from selling parts to AM division, and reduce the apparent problem.
Product division too often treated the AM division as a captive customer.The second focus of concern of the Abrams‘ top management was the behavior of part divisions, which captivated the AM division. Again, this is the consequence of Abrams Company organizational structure; the treat of divisions as profit centers, according to theory, will abdicate some control of top management since some decision makings authority are delegated to the lower level. This is the case in Abrams Company, where its division losing it synergy to reach companywide common goal. To overcome this problem Abrams Company needs to change its reward system, and plant managers will have a chance to raise its incentive from selling parts to AM division, and reduce the apparent problem.
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