Which of the following is NOT a benefit of decentralization?
A) Lower-level managers have the best information concerning local conditions and therefore may be able to make better decisions than their superiors.
B) Managers acquire decision-making ability and other management skills that help them move upward in the organization, assuring continuity of leadership.
C) Managers enjoy higher status from being independent and thus are better motivated.
D) Managers save time dealing with managers from other segments regarding transfer prices.

Question

Quizplus · Accepted Answer

Decentralization may lead to communication breakdowns and conflicts between different segments, which may cause more time and efforts in resolving these issues such as transfer prices. Therefore, D is not a benefit of decentralization.

Which of the Following Is NOT a Benefit of Decentralization