Which of the following is NOT considered an advantage of decentralization?

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Decentralization refers to the distribution of decision-making authority to lower levels in an organization. While it brings many advantages, the concept of achieving goal congruence is often a challenge in decentralized organizations. Goal congruence occurs when the goals of individual divisions or segments align with the overall objectives of the organization. In a decentralized structure, such alignment can sometimes be harder to achieve due to differing local objectives or priorities that may not necessarily support the organization's larger goals.

On the other hand, improved customer relations, use of expert knowledge, and freeing top management's time are recognized benefits of decentralization. Decentralization permits managers at various levels to better respond to customer needs and preferences because they are closer to operations and customer interactions. It allows for specialized decision-making because local managers often possess unique knowledge and understanding pertinent to their specific areas. Additionally, decentralizing authority enables top management to focus on strategic planning and long-term goals, as they are less involved in day-to-day operational decisions.

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