Which of the following is an advantage of decentralization?
A) Managers' motivation and retention can be increased by empowering segment managers to make decisions.
B) Certain costs of activities may be duplicated.
C) Customer response time is generally decreased.
D) Top management can concentrate on decisions that relate to day-to-day operations of segments.

Question

Quizplus · Accepted Answer

Decentralization can increase motivation and retention of managers by giving them more decision-making power, which can lead to a sense of ownership and responsibility. Option B is a disadvantage of decentralization as it can lead to duplication of costs. Option C is not a guaranteed advantage of decentralization as it depends on the specific circumstances. Option D is not an advantage of decentralization as it contradicts the purpose of decentralization, which is to distribute decision-making power among different levels of management.

Which of the Following Is an Advantage of Decentralization