ACCA · Question 07 · Syllabus B: Organisational structure, culture, governance and sustainability
A cross-border renewable energy firm requires its engineers to report to both a Regional Geographic Manager and a Global Head of Engineering. What is the primary disadvantage of this organizational structure?
Answer options:
It prevents the sharing of technical expertise across different regions.
It can lead to conflicting instructions and dual command issues.
It centralizes all decision-making at the very top of the organization.
It is only suitable for very small, single-product businesses.
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