Indicate Whether Each of the Following Is More Descriptive of Centralized

question 47

Short Answer

Indicate whether each of the following is more descriptive of centralized (C)or decentralized (D)decision-making.
____ 1. Decision-makers may not fully understand organizational goals and strategies
____ 2. Decisions are more easily made for the benefit of the overall organization
____ 3. Decisions are made by individuals with the greatest knowledge
____ 4. Good for organizations with stable and less complex operations
____ 5. Lack of coordination among subunits may lead to duplication in efforts
____ 6. Although less monitoring of decisions is usually needed, more monitoring of employee effort is necessary.
____ 7. Managers are motivated more often through incentive contracting rather than by monitoring
____ 8. Poor quality decisions due to lack of information
____ 9. More timely decision-making
____ 10. Upper management can focus on organizational strategies

Grasp the concept of customer value propositions and their categories.

Understand the role of balanced scorecard performance measures in organizational improvement.

Recognize the classifications of quality costs within a quality cost report.

Grasp the importance of aligning improvement efforts with performance measures on the balanced scorecard.

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Definitions:

Suboptimal Decision

A decision that does not achieve the best possible outcome or maximizes the potential value.

Divisional Autonomy

The extent to which individual divisions or units within a larger organization are given the freedom to operate independently and make their own strategic decisions.

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales staff salaries, and commission.

Shared Service Unit

An organizational unit that consolidates and provides specific services, such as HR or IT, to multiple departments within a company to improve efficiency and reduce costs.