MGAB03H3 Chapter : Week 11 - 12 chapter notes
Document Summary
N when decision-making is centralized, the right to make or authorize decisions lies within top levels of management. N when decision-making is decentralized, the rights and responsibilities for decision-making permeate all levels of the organization. Advantages less monitoring of decisions decisions are intended to benefit overall firm if decision makers have complete info, timely and efficient decisions are made good for stable operations and economic conditions. N employee effort because they may be less motivated decision makers may not have complete info, resulting in poorer-quality decisions. N when knowledge from subunits is required, the decision-making process slows down not appropriate for dynamic processes and volatile economic conditions. N managers use variance and productivity reports to gauge employee (individual and team) efforts. N managers in these cost centres are responsible for producing their goods or services efficiently. N revenue centres responsibility centre in which managers are accountable for revenues.
