The Chief Advantage of a Decentralized Organizational Structure Is to

question 16

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 in which teamwork is a core value and decisions are made on the basis of consensus.

---

Definitions:

Outcome

The result or effect of an action, situation, or economic activity.

Preferences

Individual choices or priorities that influence decision-making in various situations.

Behavioral Economists

Scholars who study the psychological, social, cognitive, and emotional factors affecting the economic decisions of individuals and institutions.

Status Quo Bias

The tendency most people have when making choices to select any option that is presented as the default (status quo) option. Explainable by prospect theory and loss aversion.