Which of the following is not a benefit of decentralization of corporate decision making?
A)Incentive problems
B)More effective use of local knowledge
C)Conservation of the time of senior management
D)Training and motivation for local managers

Question

Quizplus · Accepted Answer

Incentive problems can arise in a decentralized decision-making structure when local managers prioritize their own interests over those of the company as a whole. This can lead to suboptimal decisions and outcomes. On the other hand, the other choices - (B) More effective use of local knowledge, (C) Conservation of the time of senior management, and (D) Training and motivation for local managers - are all benefits of decentralization.

Which of the Following Is Not a Benefit of Decentralization