Which of the following is not a characteristic of decentralized organizations?
Answer(s): B
The main benefits of centralization are more effective control and reduced costs through resource sharing. In a centralized organization, senior management is able to direct control over subordinates and direct the flow of resources. Senior management is able to allocate reduce costs most effectively because they are aware of where expenses can be reduced across departments within an organization.
The primary difference between centralization and decentralization is:
Answer(s): C
The primary distinction between centralization and decentralization is in the degree of freedom of decision making by managers at many levels. In decentralization, decision making is at as low a level as possible. The premise is that the local manager can make better more informed) decisions than a centralized manager. Centralization is based on the theory that decision making must be consolidated so that activities throughout the organization may be more effectively coordinated. In most organizations, a mixture of these approaches is found to be best.
Which of the following is most likely to be a disadvantage of decentralization?
The disadvantages of decentralization include a tendency to focus on short-run results to the detriment of the long-term health of the entity, an increased risk of loss of control by top management, the increased difficulty of coordinating interdependent units, and less cooperation and communication among competing decentralized unit managers.
Which of the following is not a cost of decentralization?
Answer(s): D
The costs of centralized staff may actually decrease under decentralization. On the other hand, the corporate staff and the various services they provide may have to be duplicated in various divisions, thereby increasing overall costs. Suboptimal decisions may result fromdisharmony among organizational goals, subgoals of the division, and the individual goals of managers. The overall goals of the firm may more easily be misunderstood because individual managers may not see the larger picture. Moreover, the information system necessary for adequate reporting in a decentralized mode will tend toward redundancy, which increases costs.
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K.Tho Commented on October 05, 2023 Very helpful UNITED STATES
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