In 1982, an electrical equipment manufacturer decentralized the organization, allowing each division manager to set priorities for

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In 1982, an electrical equipment manufacturer decentralized the organization, allowing each division manager to set priorities for the work in his division. The division manager of the R&D division selected as his number one priority project the development of low-cost methods for manufacturing. This project required support from the manufacturing division. The division manager for manufacturing did not assign proper resources, claiming that the results of such a project would not be realized for at least five years, and that he (the manufacturing manager) was worried only about the immediate profits. Can this problem be resolved and divisional decentralization still be maintained?

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