Exam 12: Decision Rights: the Level of Empowerment

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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 is an example of the:

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Always Round Tire has service stores in many parts of the United States.The stores in Tennessee have petitioned for independent local store managers.The managers claim that since Memphis,Nashville,and Knoxville are hundreds of miles apart,each manager is really in a separate market and needs to deal with local marketing,sales,and pricing issues independently.What issues would need to be considered before giving these local managers the authority that they are requesting?

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The firm should consider how well the managers' performance can be measured and monitored.There may be agency costs of decentralization,although with all stores located in Tennessee,these costs may be low.Coordination costs such as coordinating inventory among the stores may also rise under this change.Local managers may not have proper access to centralized information such as customer databases,pricing expertise,etc.to be able to make the best pricing decisions.

An empowered employee has:

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Incentive problems are usually:

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An incentive problem arising from decentralization of decision making is that:

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Empowerment may be a problem because:

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Decentralized decision making is very controversial in a corporate environment.Central office managers feel like they are losing control of managers in specific plants or regional offices.What are some of the issues that must be reviewed before making the final decision on where to place final decision-making power?

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Boundary setting refers to:

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One of the benefits of decentralization is that:

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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.Would you like this arrangement?

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Which of the following is not a benefit of decentralization?

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A job in sales-such as a sales representative for an agricultural chemical company-usually represents:

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The lateral decision-right assignment is carried out on the basis of:

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

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In the case of team decision making,the size of the team is optimal when:

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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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Under what conditions will decentralization be beneficial?

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Firms grant decision rights to teams of employees for all of the following reasons except to:

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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.Kevin noticed that the specialist on bone and artificial materials compatibility is always late to meetings and contributes little.This is an example of the:

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Each year,most U.S.companies bring a Certified Public Accountant (CPA)firm to audit their books.This is an example of:

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