As organizations grow and move towards a decentralized model, one goal will often be to empower employees. One way that this is accomplished is by creating responsibility centers and assigning managers to oversee the operations of their particular area of expertise. Which of the following best represents an accurate representation of a responsibility center?
A) John is overseeing the production department at his job, and he must create a budget to implement for the upcoming year.
B) Sarah has been promoted to manage the maintenance team at a local hotel, but she must get approval for all hiring through the company president.
C) The CEO of the company has decided to oversee the customer service department since they do not trust the current manager of the department.
D) The president of the organization will oversee all business units and delegate few tasks to managers.

Question

Quizplus · Accepted Answer

This question requires familiarity with the way that responsibility centers work and how they are set up. Choice A is the only choice of the four that describes an accurate representation of what a responsibility center should be. Choice A exemplifies a person who is assigned to run a business unit and is making decisions at their own discretion. The other three choices do not represent an appropriate use of a business unit where a manager is in charge of one area and can delegate tasks as needed.

As Organizations Grow and Move Towards a Decentralized Model, One