The Chief Disadvantages of a Decentralized Organizational Structure Include

question 102

Multiple Choice

The chief disadvantages of a decentralized organizational structure include:

• A) increasing the size of the corporate bureaucracy.
• B) slowing a company's response times to changing external events because approval of what course of action to take has to go up the chain of command to the top of the management bureaucracy.
• C) discouraging lower-level managers and rank-and-file employees from exercising initiative,engaging in creative thinking,and taking responsibility for their actions.
• D) putting the organization at risk if empowered employees happen to make many "bad" decisions,especially if higher-level management is unaware of their actions.
• E) creating more layers of management.

Learn the purpose and creation of the end-of-period spreadsheet (work sheet) and its components.

Comprehend the effect of net income or loss on the balance sheet and income statement preparation from an end-of-period spreadsheet.

Understand the concept of differentiation strategy and its importance in achieving competitive advantage.

Grasp the fundamentals of value chain analysis, including distinguishing between primary and support functions.

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Definitions:

Linear Programming

A mathematical technique for optimizing a linear objective function, subject to linear equality and inequality constraints.

Overtime

Time worked by employees beyond their normal working hours, typically compensated at a higher pay rate.

Subcontracting

The process of assigning specific portions of work or projects to external parties or businesses.

Short-term Production

The process of manufacturing goods or services over a relatively brief period, focusing on immediate output and efficiency.