Exam 12: Decision Rights: The Level of Empowerment

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If D represents the level of decentralization of corporate decision-making, then Benefits = B*D and Costs = A*D + C*D2. The optimal level of decentralization occurs where the:

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Decision control is made up of:

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If D represents the level of decentralization of corporate decision-making, then Benefits = B*D and Costs = A*D + C*D2. The optimal level of decentralization occurs where:

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What are influence costs, and why do they inhibit efficient organizational design?

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Plain Truth Adverting employs KPR, a large accounting firm, to audit its books each year. This involves considerable expense for the advertising firm, since its sales account managers are very independent and maintain separate record keeping systems. Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?

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Each year, most US companies bring a CPA firm to audit their books. This is an example of:

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An empowered employee has:

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Incentive problems are usually:

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Macrosoft is implementing a new research and design shop to integrate PC manufacturers' requirements for new computer software with Macrosoft's operating system. The process of integration usually requires five different kinds of software modification tasks, plus decisions about integrating these modifications. Discuss the problems of designing the new jobs in this research and design shop.

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Boundary setting refers to:

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If decision makers do not bear the major wealth effects of decisions, then:

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Kevin Freeman is the head of a team developing plastic knee replacements. Each member of the team brings specialized knowledge to the innovation process. Without both engineers and materials specialists, the project could not be successful. This an example of the:

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If an employee makes a point of stopping each morning in his manager's office to detail the positive outcomes yesterday's work, this is an example of:

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You are assigned a group project for the class, and you will be graded as a group, and your individual grade will be decided on the group's performance relative to other groups. Will you like this arrangement?

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Centralized decision-making is most commonly found in:

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Decentralizing decision rights marries authority with local knowledge. This would seem to be a good thing, but a problem that may arise is that:

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Which of the following is not a cost of decentralization of corporate decision-making?

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