Explain the Five Reasons Why a Firm Should Decentralize Its

question 21

Essay

Explain the five reasons why a firm should decentralize its decision-making.

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Definitions:

Grouping Work Positions

The process of organizing jobs and responsibilities within a company into specific categories or departments to streamline operations.

Functional Structure

An organizational design that groups employees by their similar specializations, roles, or tasks.

Top Management Group

Consists of the highest-level executives in an organization who are responsible for strategic decisions and overall direction.

Vice Presidents

High-ranking executives in a corporation who oversee specific departments or divisions, reporting directly to the president or CEO.