Which elements of the M-form structure (the board of directors, the office of the CEO, corporate staff, division general managers, shared activity managers) should be involved in the following business activities? If more than one of these groups should be involved, indicate their relative level of involvement (e.g. 20% office of the CEO, 10% shared activity manager, 70% division general manager). Justify your answers.
a. Determining the compensation of the CEO.
b. Determining the compensation of the Corporate Vice President of Human Resources.
c. Determining the compensation of a Vice President of Human Resources in a particular business division.
d. Deciding to sell a business division.
e. Deciding to buy a relatively small firm whose activities are closely related to the activities of one of the firm’s current division.
f. Deciding to buy a larger firm that is not closely related to the activities of any of the firm’s current divisions.
g. Evaluating the performance of the Vice President of Sales, a manager whose sales staff sells the products of the three divisions in the firm.
h. Evaluating the performance of the Vice President of Sales, a manager whose staff sells the products of only one division in the firm.
i. How much money to invest in a corporate R&D function.
j. How much money to invest in an R&D function that supports the operation of two divisions within the firm.
k. Whether or not to fire an R&D scientist.
l. Whether or not to fire the Vice President of Accounting in a particular division.
m. Whether or not to fire the corporation’s Vice President of Accounting.
n. The decision to take a firm public by selling stock in the firm to the general public for the first time.