Departmentalizing decisions increases the risk of __________ leading to a poor decision.
A)bounded rationality
B)suboptimization
C)risk aversion
D)misspecification
E)complexification

Question

Quizplus · Accepted Answer

Suboptimization occurs when departmental decisions are made in the best interest of the department but may not align with the overall best interest of the organization, leading to potentially poor organizational decisions.

Departmentalizing Decisions Increases the Risk of __________ Leading to a Poor