Question

A major benefit of a decentralized organization is that:

a) Upper-level managers are more involved in routine decisions.

b) Managers are more motivated to improve.

c) It avoids decision-making by less experienced lower-level.

d) It avoids the necessity for a managerial accounting system.

Answer 1

A major benefit of a decentralized organization is that b. managers are more motivated to improve.

Step-by-step explanation:

In a decentralized organization, decision-making is distributed among lower-level managers, which gives them more autonomy and control over their own work. This sense of ownership and responsibility can motivate managers to actively seek ways to improve their performance and achieve better outcomes. A major benefit of a decentralized organization is that managers are more motivated to improve.

For example, if a manager has the authority to make decisions about their department's operations, they may be more invested in finding ways to increase efficiency, reduce costs, or improve customer satisfaction. They have a direct impact on the success of their department, which can drive them to constantly seek ways to enhance their performance.

This stands in contrast to a centralized organization where upper-level managers retain decision-making power. In such organizations, lower-level managers may feel less motivated to improve since they have less control and influence over the outcomes of their work.