question archive When decision rights are decentralized, typically a)?decisions are being moved to those with stronger incentives to make good decisions b)decisions are being moved from those with weaker incentives to make good decisions c)decisions are being moved to those with less of the relevant information d)decisions are being moved to those with more of the relevant information
Subject:EconomicsPrice:2.84 Bought7
When decision rights are decentralized, typically
a)?decisions are being moved to those with stronger incentives to make good decisions
b)decisions are being moved from those with weaker incentives to make good decisions
c)decisions are being moved to those with less of the relevant information
d)decisions are being moved to those with more of the relevant information
THE CORRECT ANSWER IS D. DECISIONS ARE BEING MOVED TO THOSE WITH MORE OF THE RELEVANT INFORMATION.
Decision is the act process of coming into an agreement with a certain choice. One therefore involves in deciding. Decisions are made and one has to consider time, acceptance and information. Making a decision involving many people will take longer since everyone has their own reasoning. Acceptance means how the decision made will have impact on people. If the decision made does not involve people, then a bigger probability is that the decision will be opposed. Information is the basic factor when deciding. For one to come up with a decision, you have to base your answers on what you know.
Decentralization in decision making is defined as the process of involving more people in decision making. The more people added should have the relevant information to make decisions. Without the needed information, making a decision will be a challenge. Decision rights are decentralized to mean an additional group with more relevant information to make decisions has been involved. If the right people involve in decision making, then the decision made will have a positive impact in business since they have the required information.