An Incentive Problem Arising from Decentralization of Decision Making Is

question 5

Multiple Choice

An incentive problem arising from decentralization of decision making is that:

• A)it leads to communication problems relating to performance evaluation of employees.
• B)managers often recruit weaker subordinates and refrain from training them properly.
• C)the costs of coordination among local managers is very high.
• D)there is less effective use of central information and expertise.