ECONOMICS

COST ACCOUNTING

RESPONSIBILITY ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Why would a company adopt a decentralized organization?
A
To train and motivate divisions managers
B
To let top management focus on strategic planning
C
To allow division managers to make important operating decisions
D
all of the above
Explanation: 

Detailed explanation-1: -Decentralized structures empower team members to use their knowledge, experience, and expertise to make meaningful contributions at work. This approach also relieves some of the burdens from business owners, so they can spend less time on daily operations and more time on expansion.

Detailed explanation-2: -Decentralized companies give more authority to lower level employees, resulting in a sense of empowerment. Decisions are often faster, and employees believe that decentralized companies provide greater levels of procedural fairness to employees.

Detailed explanation-3: -Decentralisation grants more autonomy or freedom to lower level. This helps the subordinates to do the work in the manner best suited for their department. When each department is doing to their best then productivity increases and it will generate more revenue which can be used for expansion.

There is 1 question to complete.