Question

Delegating greater authority to subordinate managers and employees

A) creates a more horizontal or fl atter organization structure with fewer management layers and usually acts to shorten organizational response times.
B) usually slows down decision-making because so many more people are involved and it takes longer to reach a consensus on what to do and when to do it.
C) can be a de-motivating factor because it requires people to take responsibility for their decisions and actions.
D) is very, very risky because it usually results in lots of "bad" decisions on the part of employees and lower levels of fi nancial performance.
E) enhances greater cross-unit coordination and aids the capture of strategic fi t benefi ts across related businesses.

Answer 1

Delegating greater authority to subordinate managers and employees can create a flatter organizational structure, enhance cross-unit coordination, and shorten response times, despite the potential risks of bad decisions.

Step-by-step explanation:

The question is about the impact of delegating greater authority to subordinate managers and employees on organizational structure and efficiency. Delegating authority can lead to a more horizontal or flatter organizational structure, which often results in fewer management layers and shortened organizational response times. This approach aligns with the trend toward team-based structures wherein feedback from all levels is valued and cross-unit coordination is enhanced. Despite the risks of potential bad decisions by employees, evidence suggests that empowering employees can improve efficiency and responsiveness, especially in the dynamic and rapidly changing modern workplace.