Corporate management can enhance the performance of its individual businesses through imposing corporate systems for performance management and resource allocation,however,the main downside of such corporate intervention is:
A)Constraining innovation
B)Undermining autonomy and motivation of business-level managers
C)Limiting opportunities for exploiting synergies between businesses
D)Requiring an excessive focus on shareholder interests over the interests of other stakeholders

Question

Quizplus · Accepted Answer

Imposing corporate systems for performance management and resource allocation can undermine the autonomy and motivation of business-level managers because they may feel that their decision-making power is being restricted. This can lead to demotivation and a lack of initiative among business-level managers, which can ultimately harm the performance of individual businesses.

Corporate Management Can Enhance the Performance of Its Individual Businesses