Management and Organizational Studies 1023A/B Chapter Notes - Chapter 5: Profit Center, Kaizen, Job Satisfaction

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

Mos- chapter 5 performance evaluation in decentralized organizations. Decentralization of decision-making organizations have no choice but to decentralize by giving lower-level manager the authority to make specified decisions. Permits timely decisions with the best available information. Tailors managerial skills and specializations to job requirements delegating decision-making to individuals with appropriate functional experience enhances decision quality. Trains future managers a well-managed organization develops and maintains a pool of managerial talent. Leads to decisions that emphasize local goals over global goals. 1: requires costly coordination of decisions decentralized organizations requires careful coordination of the decisions by managers at. 4. top management"s responsibility is to figure out how to maximize the benefits and minimize the costs associated with decentralization organizations use monitoring, performance evaluation, and incentive schemes to manage these costs. Revenue centres: managers exercise control over revenues, may also be responsible for some expenses, responsible for expenses associated with selling examples are sales divisions.