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Following its near bankruptcy in 1 9 2 2 , General Motors pioneered the decentralized management structure in which the firm was reorganized into semi
Following its near bankruptcy in General Motors pioneered the decentralized management structure in which the firm was reorganized into semiindependent profit centers. Vicepresidents were appointed to manage these profit centers and were told that their bonuses would depend on the profitability of their division. This reorganization was designed to
a reduce management costs
b better capture economies of scale
c create a more centralized management system
d decentralize decision making
e put managerial compensation on a "piece rate" basis
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