When a Small Business Begins,it Is Generally Simple for the Owner

question 127

Essay

When a small business begins,it is generally simple for the owner or manager to stay on top of everything going on in the business.However,as the business adds more product lines and locations and hires more employees,it becomes more and more difficult for top management to remain informed about the company's activities.
a.What is decentralization?
b.What are four advantages of decentralization?
c. Identify and describe the three organizational centers of responsibility under a unit manager’s control.

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Definitions:

Common Biases

Prejudices or tendencies that influence judgment and decision-making in a non-objective way.

Impressions

The initial thoughts, feelings, or perceptions one forms about another person or entity based on limited information.

Attributing

The process of explaining the cause of behaviors or events, often associating them with particular factors or motives.

Halo Effect

The rating of an individual on one trait or characteristic tends to colour ratings on other traits or characteristics.