Chapter11

Chapter11 - ReportingforControl ChapterEleven...

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Reporting for Control Chapter Eleven
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Decentralization in Organizations Benefits of Decentralization Top management freed to concentrate on strategy. Top management freed to concentrate on strategy. Lower-level managers gain experience in decision-making. Lower-level managers gain experience in decision-making. Decision-making authority leads to job satisfaction. Decision-making authority leads to job satisfaction. Lower-level decision often based on better information. Lower-level decision often based on better information. Lower level managers can respond quickly to customers. Lower level managers can respond quickly to customers.
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Decentralization in Organizations Disadvantages of Decentralization Lower-level managers may make decisions without seeing the “big picture.” Lower-level managers may make decisions without seeing the “big picture.” May be a lack of coordination among autonomous managers. May be a lack of coordination among autonomous managers. Lower-level manager’s objectives may not be those of the organization. Lower-level manager’s objectives may not be those of the organization. May be difficult to spread innovative ideas in the organization. May be difficult to spread innovative ideas in the organization.
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Cost, Profit, and Investments Centres Responsibility Centre Responsibility Centre
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This note was uploaded on 12/31/2011 for the course ACCT 441 taught by Professor Johnvermeer during the Spring '08 term at Humber.

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Chapter11 - ReportingforControl ChapterEleven...

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