Question

A manufacturing company has been growing over the past few years due to the introduction of new products. Recently, the pace of innovation has slowed. Previously, the most successful innovations came from suggestions from shop floor employees. The company has also seen some quality control issues. Local quality managers have uncovered the source and made appropriate corrections, but they were slowed by waiting for approvals from corporate headquarters. What should Kyle, a board member, suggest to the rest of the board to resolve similar issues in the future?

Answer 1

Answer: c. Decentralization

Step-by-step explanation:

Decentralization, a process that involves the relaxation of authority at higher levels and the redistribution of said authority to lower levels to enable faster decision making and independence.

This policy would work here because should shop floor employees feel they have more say in the company as well as some power to implement some ideas, it might motivate them to come up with more ideas as opposed to constantly waiting for approvals from the Corporate headquarters.

Local quality managers who uncovered the source of the quality control issues could have made appropriate corrections sooner if they did not have to wait on Corporate approvals for so long.

Decentralization would therefore ensure that matters are dealt with speedily and that innovation is improved.