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.

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Definitions:

Criminal

An individual who has committed a crime or unlawful act as defined by the legal system.

Police Officers

Individuals authorized to maintain public order, enforce laws, and prevent, detect, and investigate crimes.

Just-world Phenomenon

The cognitive bias to believe that the world is inherently fair, leading people to rationalize injustice as deserved by the victim.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring within group settings that foster anonymity.