Why Is Management Control Particularly Complex in Decentralized Multinational Organizations

question 57

Multiple Choice

Why is management control particularly complex in decentralized multinational organizations?

• A) Managers abroad are not as well-trained as managers of domestic operations.
• B) Decision-making authority is not delegated to the local managers of foreign operations.
• C) Managers of foreign operations may be motivated by local goals rather than parent's goals.
• D) Financial risks are always higher for the local managers of foreign operations than for managers of domestic operations.

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Definitions:

Unconscious Determination

The influence of unconscious factors on thoughts, behaviors, and decisions, highlighting the role of hidden mental processes.

Behavior Consequence

The outcome or result of an action, which can either reinforce the behavior or deter it in the future.

Reinforcement

A psychological principle involving the use of rewards or punishments to increase or decrease the likelihood of a particular behavior.

Aversive Event

An unpleasant or undesirable occurrence that can lead to changes in behavior or psychological state.