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Coordination

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You are concerned about the company's largest division--luxury--because cost has been increasing much faster than revenue for the last 3 years. However, the head of the division, who reports directly to the CEO, believes that increased cost is simply a result of internal charge backs for what he terms as "overhead." On many occasions, he has stated that "IT and HR are hiring too many people and driving up my costs." Discuss with the CEO how the structure of the company impacts the cost of the luxury division. Be sure to discuss how changes could be made to incentivize the head of the three areas to work together to control costs.

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542 words, APA References.

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The response addresses the queries posted in 638 words with references.

//It seems that the query which you have presented relates to a problem of coordination between HR & IT department of an organization. The cost of resources impacts profit of a company. In response to your query, I am going to provide you with an understanding about how the coordination can be formed within the different departments of an organization. //

Coordination

The head of the division faces the problem of higher cost in comparison with revenue. He believes that increased cost is simply a result of overhead. On many occasions, he also gives the following statement "IT and HR are hiring too many people and driving up my costs". This shows that there is some problem in the company's structure which leads to the high cost of luxury division. . The company's structure lacks coordination, communication and motivation among various departments and employees which leads to the rise in the cost of luxury division.

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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