In large businesses,decentralization is often advantageous because
A)it allows top management to make all decisions,thus ensuring that overall operational goals are met.
B)it prevents decisions from one unit to negatively affect the profitability of the entire company.
C)it allows departmental managers to focus on acquiring expertise in their areas of responsibility.
D)all of these are advantages of decentralization.

Question

Quizplus · Accepted Answer

Decentralization allows for departmental managers to focus on acquiring expertise in their areas of responsibility, leading to more efficient and effective decision-making within their departments. This can ultimately benefit the entire company as a whole. Option A is incorrect as decentralization involves granting decision-making power to lower-level managers, not top management. Option B is partially correct, as decentralization can prevent negative effects from one unit, but it also allows for units to act independently and potentially compete against each other. Option D is incorrect as option A is false.

In Large Businesses,decentralization Is Often Advantageous Because