Decentralization Is Lauded as Important to Good Management

question 96

Essay

Decentralization is lauded as important to good management. But it is not without its problems.
Required:
Identify the advantages and disadvantages of decentralization? How do ROI, Residual Income, and EVA affect these issues?

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Definitions:

Contrast Errors

A type of evaluation error that occurs when an employee's assessment is based on a comparison with another employee rather than on individual performance standards.

Behaviorally Anchored Rating Scale

A method used in performance appraisal that links specific behavioral patterns with specific performance ratings to ensure objectivity and fairness.

Behavioral Observation Scale

A systematic method for assessing job performance based on directly observing and recording an employee’s behavior in the workplace.

Critical Incidents

Specific situations or events that significantly impact operations or personnel, often used in performance assessments and training.