Passage:
In the early twentieth century, large manufacturing enterprises faced unprecedented operational friction under the traditional unitary organizational structure (U-form), which centralized functional departments such as sales, production, and purchasing under a single executive hierarchy. As product lines diversified, senior executives became overwhelmed by daily operational logistics, diminishing their capacity for strategic capital allocation. To resolve this bottleneck, corporate architects introduced the multidivisional structure (M-form), partitioning the enterprise into semi-autonomous operating divisions organized by product or region, each governed by its own general manager. Under the M-form, divisional managers retained sole authority over immediate operational tactics and market adaptations, freeing top executives to focus exclusively on long-term strategy and cross-divisional capital distribution. Crucially, centralized executive control was maintained through rigorous financial auditing mechanisms; top management evaluated divisional performance against standard return-on-investment metrics, reallocating capital away from underperforming units toward high-yield divisions. Consequently, while divisional managers enjoyed operational autonomy, their strategic survival depended directly upon meeting centralized financial benchmarks set by executive management.
Based on the passage above, evaluate whether the following statement is True or False: Under the multidivisional structure (M-form), senior executives relinquished direct operational oversight of product divisions while using standardized financial metrics to retain strategic control over corporate capital deployment.
Answer: Answer