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Which 2 types of decisions should remain centralized even in a decentralized decision-marking environment?

1) Strategic decisions and financial decisions
2) Operational decisions and tactical decisions
3) Routine decisions and day-to-day decisions
4) Long-term decisions and short-term decisions

1 Answer

4 votes

Final answer:

In a decentralized decision-making environment, strategic decisions and financial decisions should remain centralized to maintain consistency and align with the company's overall goals.

Step-by-step explanation:

In a decentralized decision-making environment, it is generally accepted that certain types of decisions should remain centralized to ensure consistency and alignment with the company's overall strategy and goals. The two types of decisions that should remain centralized even in a decentralized environment are strategic decisions and financial decisions. Strategic decisions are crucial as they shape the company's long-term direction and objectives, and therefore, require a top-down approach to maintain a unified vision across the organization. Financial decisions involve significant resource allocation and have profound impacts on the organization's fiscal health, making central oversight necessary to optimize and control these decisions.

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