RSM260H1 Lecture Notes - Balanced Scorecard, Transfer Pricing, Cost Leadership
Document Summary
Decentralized organization: an organization in which decision making is spread throughout the organization rather than being confined to a few top executives. In one extreme, a strongly decentralized organization is one in which there are few, if any, constraint on the feed a quality that the lowest level managers and employees to make decisions. And the other extreme, in a strongly centralized organization, no level managers have little be done to make decision. Affecting decentralization requires that meant reporting to permit an analysis if and evaluation of the decisions made by the segment manager. A segment is defined as a part or activity of an organization about which managers would like costs, revenue, or profit that has. To operate effectively, managers and decision makers must have a great deal more information available to them that the information provided by its single company wide income statement.
