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NEW QUESTION: 1
Which of the following is not a cost of decentralization?
A. Increased costs for developing the information system.
B. Increased costs of corporate-level staff services and management talent.
C. Dysfunctional decision making owing to disagreements of managers regarding overall goals and sub goals of the individual decision makers.
D. A decreased understanding of the overall goals of the organization.
The costs of centralized staff may actually decrease under decentralization. On the other hand, the corporate staff and the various services they provide may have to be duplicated in various divisions, thereby increasing overall costs. Suboptimal decisions may result fromdisharmony among organizational goals, subgoals of the division, and the individual goals of managers. The overall goals of the firm may more easily be misunderstood because individual managers may not see the larger picture. Moreover, the information system necessary for adequate reporting in a decentralized mode will tend toward redundancy, which increases costs.