Identify which of the following statements is not a problem with decentralization.
A)Managers may make decisions that are not in the organization's best interests.
B)Managers tend to duplicate services that might be less expensive if centralized.
C)Costs of accumulating and processing information are frequently reduced.
D)Managers may waste time bargaining with other segment managers about transfer prices.

Question

Quizplus · Accepted Answer

This statement is actually a benefit of decentralization - reducing the costs of accumulating and processing information. The other options are all potential problems with decentralization.

Identify Which of the Following Statements Is Not a Problem