Final answer:
The integration of production, marketing, and human resources in a global structure is challenging due to a heavy reliance on headquarters, which can limit the responsiveness and effectiveness of local subsidiaries.
Step-by-step explanation:
The integration needed to manage production, marketing, and human resources is difficult to achieve with a global structure primarily because of the heavy reliance on headquarters. When an organization operates on a global scale, the coordination of these aspects becomes complex due to various factors such as different cultural practices, legal requirements, and market dynamics in each country. The presence of a centralized authority exacerbates this complexity as subsidiaries might not have enough autonomy to respond quickly to local conditions. Furthermore, when a centralized structure is in place, subsidiaries may not have the flexibility or empowerment to make decisions that are best for their local market, leading to inefficiencies and slower responses to market changes.
Conversely, providing excessive autonomy to subsidiaries could lead to a lack of cohesion and unified strategy across the global organization. It is a delicate balance between central control and local autonomy that global companies must navigate to be successful. A highly decentralized information system can aid in allowing local subsidiaries to respond effectively while maintaining alignment with the company's global strategy.