In addition to other factors, the increased use of technology and the reduced co
ID: 1224985 • Letter: I
Question
In addition to other factors, the increased use of technology and the reduced costs of information transfer from local office to corporate headquarters has: A. significantly increased the need for centralized decision making. B. only increased the costs of decentralization. C. reduced the need for middle managers and increased the scope of local decision-making authority. D. shown that technology has little impact on the centralization issue.
The lateral decision-right assignment is carried out on the basis of: A. the distribution of knowledge and the coordination and control costs. B. technological advances that allow firms to flatten their management structures. C. the degree of vertical integration of firms. D. the strength of the team of the local managers.
Explanation / Answer
Answer : Option number C is correct.Reduced the need for middle managers and increased the scope of local decision making authority.Middle managers are at the middle level of an organisational hierarchy.It is the one which establishes communication between the top level management and the lower level management.For easy CCTV camera and telephone in the production room-If a CCTV camera and Telephone is placed in the production room then a worker can be closely watched and any information thereon can be directly be placed to the top management who is sitting and may be watching all the activity in the production department.Middle level managers are said to be too costly, non-effective and constantly underperforming employees. It has been stated that middle managers do not carry out their main duties of linking the organization and reporting effectively, which leads to a block of communication between different levels of staff.Thus, as rapid growth of technological progess put pressures on businesses in terms of cost effectiveness and speed of information flow within the organization, middle management make companies less flexible and competitive.
Answer :Option number D is correct.Lateral Decision Right refers to the assignment of decision making right to a particular team.Firms grant decision rights to team of empolyees for at least three basic purpose: to manage activity,to make products,and to recommend actions.
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