Question 1

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?

Accepted Answer

Clearly,it depends on whether you are la...

Question 2

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

Accepted Answer

A)  there are five members in the team.
B)  the number of team members exceeds ten.
C)  the additional cost of adding a new member equals the incremental benefits.
D)  the additional cost of adding a new member is less than the incremental benefits.E) B) and D)
F) All of the above

Question 3

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

Accepted Answer

A)  manage activities.
B)  make products.
C)  make basic investment decisions.
D)  recommend actions.E) B) and C)
F) A) and C)

Question 4

One of the benefits of decentralization is that:

Accepted Answer

A)  it lowers the opportunity cost of the time of the higher management.
B)  local managers have a strong incentive to maximize a firm's value.
C)  there are economies of scale if local managers take pricing decisions.
D)  full use can be made of the central manager's knowledge and expertise.E) A) and B)
F) None of the above

Question 5

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:

Accepted Answer

A)  benefits of the use of dispersed specific knowledge.
B)  costs of employee buy-in.
C)  costs of collective-action problems.
D)  free-rider problem.E) A) and D)
F) A) and C) A

Question 6

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:

Accepted Answer

A)  benefits of the use of dispersed specific knowledge.
B)  costs of employee buy-in.
C)  costs of collective-action problems.
D)  free-rider problem.E) A) and B)
F) B) and C)

Question 7

Which of the following is not a benefit of decentralization?

Accepted Answer

A)  Effective use of local knowledge
B)  Possibility to shirk and enjoy credits from free riding
C)  Conservation of management time
D)  Possibility to increase motivation and productivityE) None of the above
F) A) and C)

Question 8

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?

Accepted Answer

Benefits of decentralization include mor...

Question 9

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?

Accepted Answer

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.

Question 10

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

Accepted Answer

A)  a lack of trust between the companies and the managers.
B)  separation of decision management and decision control.
C)  the impact of influence costs.
D)  the benefits of decentralization or outsourcing.E) C) and D)
F) All of the above

Question 11

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

Accepted Answer

A)  Incentive problems
B)  Coordination costs and failures
C)  Less effective use of central information
D)  More effective use of local knowledgeE) B) and C)
F) A) and D)

Question 12

An empowered employee has:

Accepted Answer

A)  explicit rights to initiate but not implement any decision.
B)  explicit rights to initiate and implement any decision,subject to the manager's ratification and monitoring.
C)  explicit rights to initiate and implement any decision,without the manager's ratification and monitoring.
D)  explicit rights to implement but not initiate any decision.E) A) and B)
F) B) and C) B

Question 13

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

Accepted Answer

A)  many tasks and little sales authority.
B)  few tasks and very little sales authority.
C)  many tasks and a lot of sales authority.
D)  few tasks and a lot of sales authority.E) A) and B)
F) None of the above

Question 14

Incentive problems are usually:

Accepted Answer

A)  larger when the decision rights are placed higher in the organization.
B)  larger when the decision rights are placed lower in the organization.
C)  smaller when the decision rights are placed lower in the organization.
D)  large regardless of where the decision rights are placed.E) A) and B)
F) All of the above

Question 15

Boundary setting refers to:

Accepted Answer

A)  managers requesting permission to ratify every decision made by an empowered worker.
B)  managers preratifying certain decisions made by empowered workers within a certain range,while still maintaining supervisory control.
C)  employees seeking approval for every decision from managers.
D)  workers setting up rules of empowerment that might influence their decision-making authority.E) A) and B)
F) A) and C)

Question 16

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

Accepted Answer

A)  it leads to communication problems relating to performance evaluation of employees.
B)  managers often recruit weaker subordinates and refrain from training them properly.
C)  the costs of coordination among local managers is very high.
D)  there is less effective use of central information and expertise.E) None of the above
F) A) and B)

Question 17

Under what conditions will decentralization be beneficial?

Accepted Answer

The net benefits of decentralization wil...

Question 18

Empowerment may be a problem because:

Accepted Answer

A)  managers are never eager to empower anyone else except themselves.
B)  managers are usually ambiguous when it comes to empowerment.
C)  workers are always eager to empower themselves even if they are unqualified.
D)  managers are usually very eager to empower those who are least qualified.E) B) and C)
F) A) and B)

Question 19

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.

Accepted Answer

Macrosoft may be considering whether to ...

Question 20

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

Accepted Answer

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.E) All of the above
F) B) and D)

Exam 12: Decision Rights: the Level of Empowerment

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?

Correct Answer
verified
Clearly,it depends on whether you are la...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

One of the benefits of decentralization is that:

Correct Answer
verified

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:

Correct Answer
verified
A

Correct Answer
verified

Which of the following is not a benefit of decentralization?

Correct Answer
verified

Correct Answer
verified
Benefits of decentralization include mor...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

An empowered employee has:

Correct Answer
verified
B

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

Correct Answer
verified

Incentive problems are usually:

Correct Answer
verified

Boundary setting refers to:

Correct Answer
verified

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

Correct Answer
verified

Under what conditions will decentralization be beneficial?

Correct Answer
verified
The net benefits of decentralization wil...
View Answer

Empowerment may be a problem because:

Correct Answer
verified

Correct Answer
verified
Macrosoft may be considering whether to ...
View Answer

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

Correct Answer
verified

Exam 12: Decision Rights: the Level of Empowerment

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?

Correct AnswerverifiedClearly,it depends on whether you are la...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One of the benefits of decentralization is that:

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedA

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of decentralization?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedBenefits of decentralization include mor...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An empowered employee has:

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

Incentive problems are usually:

Correct AnswerverifiedShow Answer

Boundary setting refers to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under what conditions will decentralization be beneficial?

Correct AnswerverifiedThe net benefits of decentralization wil...View AnswerShow Answer

Empowerment may be a problem because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMacrosoft may be considering whether to ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified
Clearly,it depends on whether you are la...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Benefits of decentralization include mor...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The net benefits of decentralization wil...
View Answer

Correct Answer
verified

Correct Answer
verified
Macrosoft may be considering whether to ...
View Answer

Correct Answer
verified