When decision-making responsibilities are decentralized, benefits include all of the following except
A) increased motivation and accountability.
B) lower managerial costs from flattened hierarchy.
C) reduced information overload.
D) easier coordination of the organizational activities needed to pursue a company's strategies.
E) All of these are benefits of decentralization.

Question

Quizplus · Accepted Answer

Decentralization means decision-making responsibilities are transferred to lower levels of management. This can lead to increased motivation and accountability (A), lower managerial costs (B), and reduced information overload (C) for top-level managers. However, decentralized decision-making can also make it more difficult to coordinate organizational activities needed to pursue a company's strategies (D), as individual units may pursue their own goals rather than aligning with overall organizational objectives. Therefore, D is not a benefit of decentralization.

When Decision-Making Responsibilities Are Decentralized, Benefits Include All of the Following