Discuss the significance of decentralization
What will be an ideal response?
As the hierarchy becomes taller and the number of managers increases, communication and coordination problems grow. Managers begin to spend more and more time monitoring and supervising their subordinates and less time planning and goal setting, and organizational effectiveness suffers. One solution to this problem is to decentralize authority because now less direct managerial supervision is needed. When authority is decentralized, the authority to make significant decisions is delegated to people throughout the hierarchy, not concentrated at the top. The delegation of authority to lower-level managers reduces the monitoring burden on top managers and reduces the need for "managers to monitor managers."
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Suppose during the year a company makes a profit manufacturing and selling glow-in-the-dark socks and retains some of its earnings. Next year it manufactures and sells exactly the same amount, at the same costs per unit, same fixed costs, etc. What is its ROE for the second year compared to the first?
a) higher b) lower c) the same D) none of the above
All of the following factors except ________ make international telephone interviewing easier
A) relatively upscale consumers who are accustomed to business transactions by phone B) consumers who can be reached by phone and can express themselves easily C) decline in the costs of international telephone calls D) in many cultures face-to-face relationships are predominant