Question

The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year. Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal. The division managers of these three underperforming divisions have all secretly contacted executive-placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all important at Transector. Transector probably uses the:

Answer 1

Answer: Competitive type of the multi-divisional structure

Explanation:

Here, in this particular case, using the given information we can state that Transector Inc. is using the competitive form of the multi-divisional corporate structure. In this multi-divisional structure, there tends to lie one parent organization which usually consists of several different divisions and sub-divisions that are known to operate distinguished businesses. In legal terminology, the parent organization is known to own all the divisions, but they are also known to provide them with significant autonomy, in order for them to work independently.