Identify and discuss the basic tenets, the chief advantages, and the chief disadvantages of decentralized organizational structures.
What will be an ideal response?
Basic tenets of decentralized organizational structures include:
• Decision-making authority should be put in the hands of the people closest to, and most familiar with, the situation.
• Those with decision-making authority should be trained to exercise good judgment.
• A company that draws on the combined intellectual capital of all its employees can outperform a command-and-control company.
Chief advantages:
• Encourages company employees to exercise initiative and act responsibly.
• Promotes greater motivation and involvement in the business on the part of more company personnel.
• Spurs new ideas and creative thinking.
• Allows for fast response to market change.
• Entails fewer layers of management.
Primary disadvantages:
• May result in higher-level managers being unaware of actions taken by empowered personnel under their supervision.
• Can lead to inconsistent or conflicting approaches by different managers and employees.
• Can impair cross-unit collaboration.
You might also like to view...
Under the indirect method, debits to the investing and financing sections represent inflows of cash
a. True b. False Indicate whether the statement is true or false
To complement a business's internal financial performance metrics, a business needs a parallel set of external marketing metrics to track its market-based performance
Indicate whether the statement is true or false
Explain “soft” and “hard” influence tactics and how they relate to commitment, compliance, and resistance.
What will be an ideal response?
Tonix Corporation produces two products, P and Q
P sells for $7.00 per unit; Q sells for $6.00 per unit. Variable costs for P and Q are $3.00 and $5.00, respectively. There are 3,300 direct labor hours per month available for producing the two products. Product P requires 2.00 direct labor hours per unit, and product Q requires 2.00 direct labor hours per unit. The company can sell up to 300 units of each kind per month. What is the maximum monthly contribution margin that Todd can generate under the circumstances? (Round to nearest whole dollar.) A) $1,200 B) $1,350 C) $2,550 D) $17,850