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What is largely involved in determining the degree of decision-making authority

ID: 468822 • Letter: W

Question

What is largely involved in determining the degree of decision-making authority granted to business units and individual employees?

Maintaining adequate organizational control over employees by instituting compensation incentives that reward people for good performance.

Deciding between a structure that grants comparatively little discretionary authority against one that gives considerable decision-making latitude.

Ensuring appropriate skill variety and meaningful work.

Deciding between flexible production schedules and traditional work practices.

Deciding between a structure that ensures individual-based work against one that promotes team-based work systems.

a.

Maintaining adequate organizational control over employees by instituting compensation incentives that reward people for good performance.

b.

Deciding between a structure that grants comparatively little discretionary authority against one that gives considerable decision-making latitude.

c.

Ensuring appropriate skill variety and meaningful work.

d.

Deciding between flexible production schedules and traditional work practices.

e.

Deciding between a structure that ensures individual-based work against one that promotes team-based work systems.

Explanation / Answer

Answer:

a. Deciding between a structure that grants comparatively little discretionary authority against one that gives considerable decision-making latitude.

Before providing the decision making authority the management will have to consider whether the structure is centralized or decentralized. The structure based on the situation has to be considered first.

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