The use of hierarchies is common in modern corporations:
A)because of the principle of comparative advantage.
B)because of the principle of separation of decision management and decision control.
C)to avoid collective-action problems.
D)to enhance employee buy-in.

Question

Quizplus · Accepted Answer

The principle of separation of decision management and decision control is the main reason why hierarchies are used in modern corporations. Decision management involves making strategic decisions and setting goals, while decision control involves implementing and monitoring those decisions. Separating these two functions allows for better accountability and control within the organization.

The Use of Hierarchies Is Common in Modern Corporations