Question

Which of the following is an advantage of decentralization?

A) Managers' motivation and retention can be increased by empowering segment managers to make decisions.
B) Certain costs of activities may be duplicated.
C) Customer response time is generally decreased.
D) Top management can concentrate on decisions that relate to day-to-day operations of segments.

Answer 1

Decentralization in business can increase managers' motivation and retention by empowering them to make decisions based on their understanding of local market conditions and customer preferences.

Step-by-step explanation:

An advantage of decentralization is that managers' motivation and retention can be increased by empowering segment managers to make decisions.

When segment managers are given decision-making power, they feel a sense of ownership and responsibility for their segments, which can motivate them to perform better and stay with the company for longer. This can lead to better decision-making and overall performance of the organization.

For example, if a retail company has multiple stores, decentralizing decision-making allows each store manager to make decisions on pricing, promotions, and inventory management based on their understanding of local market conditions and customer preferences. This can result in more efficient operations and better tailored offerings for customers.

Therefore,the correct answar is A) Managers' motivation and retention can be increased by empowering segment managers to make decisions.