Which one of the following is an advantage of decentralization?
A)It allows senior managers at head office to retain close scrutiny of all aspects of the organization's activities
B)The organization always saves substantial amounts on running costs
C)It can help to increase motivation by giving divisional managers greater autonomy
D)It increases the need for regular performance reporting

Question

Quizplus · Accepted Answer

Decentralization can help to increase motivation by giving divisional managers greater autonomy, as they have more control and responsibility over their own division or department. This can lead to increased job satisfaction and a sense of ownership in their work, which can in turn increase productivity and performance. The other options are not advantages of decentralization - A is a disadvantage as it reduces the scrutiny from head office, B is not always true as decentralization may require additional costs for setting up and maintaining the infrastructure, and D is neither an advantage nor a disadvantage as regular performance reporting is necessary regardless of the level of centralization.

Which One of the Following Is an Advantage of Decentralization