When Decision Making Is Decentralised

question 52

Multiple Choice

When decision making is decentralised

• A) Upper management does not make decisions
• B) Decision-making authority is delegated throughout the organisation
• C) The important information in an organisation is very general
• D) Organisations are less likely to experience agency costs concerning goal congruence

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Definitions:

High-Quantity Goals

Targets that focus on producing a large volume of work or achieving a high number of outcomes within a specified timeframe.

High-Quality Goals

Objectives that are specific, measurable, achievable, relevant, and time-bound, promoting effective planning and accomplishment.

Explicit Rules

Clearly defined codes of conduct, procedures, or guidelines that are formally established and communicated.

Convergent Thinking

A thought process that aims at deriving the best possible answer to a problem from a set of potential solutions, focusing on logical and systematic approaches.