Which of the following statements best completes this sentence? 'The biggest challenge(s) facing all decentralised firms is .....'
A) to reap the advantages of autonomy.
B) to attempt to ensure goal congruence.
C) to choose the most appropriate transfer price.
D) to reap the advantages of autonomy AND to attempt to ensure goal congruence.

Question

Quizplus · Accepted Answer

Autonomy is one of the key characteristics of decentralization, and it is often a double-edged sword. While it allows individual units to be innovative and respond quickly to local market needs, it can also create conflicts between individual units and the overall goals of the organization. Therefore, ensuring goal congruence is another critical challenge for decentralized firms, as it involves aligning individual goals with the broader strategic objectives of the firm. Hence, both the challenges of reaping the advantages of autonomy and ensuring goal congruence are equally important for decentralized firms. Transfer pricing is also an important issue for decentralized firms, but it is not the biggest challenge facing them.

Which of the Following Statements Best Completes This Sentence? 'The