The biggest challenge in making a decentralized organization function effectively is:
A) earning maximum profits through fair practices.
B) minimizing losses.
C) taking advantage of the specialized knowledge and skills of highly talented managers.
D) obtaining goal congruence among division managers.
E) developing an adequate budgetary control system.

Question

Quizplus · Accepted Answer

The biggest challenge in making a decentralized organization function effectively is obtaining goal congruence among division managers. This is because in a decentralized organization, decision-making authority is distributed among various levels of management, and aligning the diverse objectives of different divisions with the overall goals of the organization can be difficult.

The Biggest Challenge in Making a Decentralized Organization Function Effectively