An incentive problem arising from decentralization of decision making is that:
A)it leads to communication problems relating to performance evaluation of employees.
B)managers often recruit weaker subordinates and refrain from training them properly.
C)the costs of coordination among local managers is very high.
D)there is less effective use of central information and expertise.

Question

Quizplus · Accepted Answer

Managers often recruit weaker subordinates and refrain from training them properly to avoid being outshined by more competent subordinates.

An Incentive Problem Arising from Decentralization of Decision Making Is