A Decentralized Organizational Structure Is Predicated on the Belief That

question 50

Multiple Choice

A decentralized organizational structure is predicated on the belief that

• A)top executives should establish a collegial, collaborative culture where decisions are made by general consensus on what to do and when.
• B)strict enforcement of detailed procedures backed by rigorous managerial oversight is necessary because company personnel cannot be counted on to act wisely or keep costs to a bare bones level.
• C)decision-making authority should be pushed down to the lowest organizational level capable of making timely, informed, and competent decisions.
• D)most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and that they lack the knowledge and judgment to make wise decisions about how best to do their work.
• E)lower-level managers and employees should go up the ladder of command for approval on most all strategic and operating issues of much importance.

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Definitions:

Private Consumption

Expenditure by households on goods and services, excluding purchases of dwellings, which is a key component in the calculation of a country's Gross Domestic Product (GDP).

Pareto Efficient

An economic condition wherein resources are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Private Good

A product or service that is excludable and rivalrous, meaning its consumption by one individual prevents others from consuming it.