Which of the following is a disadvantage of decentralization? A) It results in i

Question

Which of the following is a disadvantage of decentralization? A) It results in increased customer response time. B) It allows only the top management to make decisions. C) It does not motivate employees because the decision-making powers arc not delegated. D) It results in problems with achieving goal congruence. Which of the following is a key performance indicator of the internal business perspective oi the balanced scorecard? A) number of units produced per hour B) employee turnover C) cash flow D)number of cross-trained employees

Explanation / Answer

26. The disadvantage of decentralization is that it results in difficullty in achieving goal congruence among divisions as every division will try to achieve their individual goals and any common goal congruemce will be difficult.

Decentralization facilitate quicker customere response, delegates decision making power to divisional managers and motivate the employees.

So option D is correct.

27. Employee turnover and no of Cross trained employees are HR related KPI. Cash flow is Financial KPI. The internal business perspective related KPI is the no of units produced per hour.

So correct option is A.

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