A management decision may be beneficial for a given profit center,but not for the entire company.From the overall company viewpoint,this decision would lead to
A)goal congruence.
B)centralization.
C)suboptimization.
D)maximization.

Question

Quizplus · Accepted Answer

Suboptimization is the situation where a decision is beneficial for a certain part of a company or a department, but it negatively impacts the overall company performance. Therefore, the given management decision that benefits a profit center, but not the entire company, would lead to suboptimization. The company should strive for goal congruence, i.e., decisions that benefit the entire company, rather than just a part of it. Centralization refers to the concentration of decision-making power, which is not related to the given scenario. Maximization refers to the process of maximizing performance, which is not specific enough to address the given scenario.

A Management Decision May Be Beneficial for a Given Profit