IMANET Exam CMA Topic 5 Question 48 Discussion

Actual exam question for IMANET's CMA exam

Question #: 48
Topic #: 5

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions?

AIndividual managers regarding the managers of other segments as they do external parties

BTwo divisions of the organization having competing models that aim for the same market segments.

CDelays in securing approval for the introduction of new products

DGreater knowledge of the marketplace and improved service to customers.

Show Suggested Answer

Suggested Answer: C

Decentralization is beneficial because it creates greater responsiveness to the needs of local customers, suppliers, and employees Managers at lower levels are more knowledgeable about local markets and the needs of customers, etc. A decentralized organization is also more likely to respond flexibly and quickly to changing conditions, for example, by expediting the introduction of new products. Furthermore, greater authority enhances managerial morale and development. Disadvantages of decentralization include duplication of effort and lack of goal congruence.

by Noah at May 10, 2022, 01:19 AM

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