Business Week magazine says firms should “base executive compensation on actual company performance, rather than on the company’s stock price.” For example, Target Corp. bases executive pay on same-store sales growth rather than stock price. Discuss.
Answer to relevant QuestionsWhat do you especially like and dislike about Halliburton’s organizational chart shown in the chapter? What would you change if anything? Why? In stating objectives, why should terms such as increase, minimize, maximize, as soon as possible, adequate, and decrease be avoided? What are the two major disadvantages of an SBU-type organizational structure? What are the two major advantages? At what point in a firm’s growth do you feel the advantages offset the disadvantages? Explain. List reasons why it is important for an organization not to have a “glass ceiling”. Explain why organizational structure is so important in strategy implementation.
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