The lateral decision-right assignment is carried out on the basis of:
A)the distribution of knowledge and the coordination and control costs.
B)technological advances that allow firms to flatten their management structures.
C)the degree of vertical integration of firms.
D)the strength of the team of the local managers.

Question

Quizplus · Accepted Answer

The lateral decision-right assignment is based on the distribution of knowledge and coordination and control costs. This means that decisions should be assigned to the individuals or teams that have the relevant knowledge and expertise to make the most effective decisions, while also considering the efficiency of coordination and control within the organization. This approach is known as decentralized decision making and is a key feature of modern management practices. Technological advances, degree of vertical integration, and the strength of local managers may also have some impact, but they are not the primary factors driving the lateral decision-right assignment.

The Lateral Decision-Right Assignment Is Carried Out on the Basis