How can an organization prevent decisions made by a decentralized manager from being inconsistent with the firm's objectives?

Question

Quizplus · Accepted Answer

By having decisions that benefit the entire company be made at the corporate level, it allows for consistency and alignment with the company's objectives. Additionally, developing a system of responsibility accounting allows for decentralized managers to be held accountable for their decisions and ensures that they are in line with the company's goals. This combination of higher-level decision-making and accountability measures can help prevent inconsistent decisions from being made. Option A is not sufficient on its own as it does not address accountability for decisions made by decentralized managers. Option B is also not sufficient on its own as it does not address the need for centralized decision-making for company-wide objectives. Option C is not a practical solution as it is not feasible for top management to make all decisions throughout the organization.

How Can an Organization Prevent Decisions Made by a Decentralized