As companies become established and shift from a centralized to a decentralized business model, employees start to become empowered to own and manage certain processes. While this comes with its own set of implementation challenges initially, it is usually considered worthwhile in the long run. Which of the following represents a benefit of decentralization?
A) Certain activities are likely to be duplicated, and that can mean that money will be saved as the work gets completed faster.
B) Increased levels of management mean the turnaround times for approvals will decrease.
C) Managers will likely show more initiative when they have the authority to make decisions for their own business unit.
D) The company increases its ability to place employees and managers in areas where they are not currently specialized.

Question

Quizplus · Accepted Answer

This question requires familiarity with the benefits of decentralized management systems. While some of the choices above appear to be correct, there is one aspect of three choices that makes the option either inaccurate or a drawback. Choice C is the only one of the four that represents a true benefit of a decentralized management system.

As Companies Become Established and Shift from a Centralized to a Decentralized