The Chief Advantage of a Decentralized Organizational Structure Is to

question 5

Multiple Choice

The chief advantage of a decentralized organizational structure is to

• A) put decision-making authority in the hands of those closest and most knowledgeable about the situation.
• B) make it easy to fix accountability when company performance targets are not met.
• C) increase productivity on the part of the workforce.
• D) enhance cross-unit coordination and capture of strategic fits.
• E) create a collegial,collaborative culture where teamwork is a core value and decisions are made on the basis of consensus.

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Definitions:

Current Consumption

The portion of income or wealth that is spent on goods and services in the present, as opposed to saving for future expenditure.

Future Consumption

The saving or postponing of consumption today in order to consume in the future, often considered in economic theories of savings and investment.

Real Rate

The interest rate adjusted for inflation, reflecting the real purchasing power of interest earnings.

Nominal Rate

The interest rate before adjusting for inflation, reflecting the percentage that is paid for the use of money.