What is the term used to describe the situation when a manager's decision which benefits one subunit is more than offset by the costs to the organization as a whole

ACCOUNTING

Multiple Choice

What is the term used to describe the situation when a manager's decision which benefits one subunit is more than offset by the costs to the organization as a whole?

a. Suboptimal decision making

b. Dysfunctional decision making

c. Congruent decision making

d. Both (a) and (b)

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All of the following are benefits of decentralization EXCEPT that

ACCOUNTING

Multiple Choice

All of the following are benefits of decentralization EXCEPT that

a. it creates greater responsiveness to local needs.

b. it decreases management and worker morale.

c. it leads to quicker decision making.

d. it sharpens the focus of managers.

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A disadvantage of decentralization is that it

ACCOUNTING

Multiple Choice

A disadvantage of decentralization is that it

a. creates greater responsiveness to local needs.

b. focuses manager's attention on the organization as a whole.

c. does not result in a duplication of activities.

d. encourages suboptimal decision making.

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An advantage of decentralization is that it

ACCOUNTING

Multiple Choice

An advantage of decentralization is that it

a. creates greater responsiveness to local needs.

b. focuses manager's attention on the organization as a whole.

c. does not result in a duplication of activities.

d. reduces the cost of gathering information.

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The degree of freedom to make decisions is

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Multiple Choice

The degree of freedom to make decisions is

a. decentralization.

b. autonomy.

c. centralization.

d. motivation.

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Exertion towards a goal is

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Multiple Choice

Exertion towards a goal is

a. motivation.

b. effort.

c. goal congruence.

d. incentive.

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The formal management control system includes

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Multiple Choice

The formal management control system includes

a. performance measures.

b. mutual commitments.

c. incentive plans.

d. both (a) and (c).

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