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bernie2981 bernie2981
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7 years ago
List and describe reasons why a company might choose to decentralize its operations.
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Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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 1.   Frees top management's timeby delegating responsibility for daily operations to unit managers, top management can concentrate on long-term strategic planning and higher-level decisions that affect the entire company.
2.   Supports use of expert knowledgedecentralization allows top management to hire the expertise each business unit needs to excel in its specific operations.
3.   Improves customer relationsunit managers focus on just one segment of the company; therefore, they can maintain close contact with important customers.
4.   Provides trainingdecentralization also provides unit managers with training and experience necessary to become effective top managers.
5.   Improves motivation and retentionempowering unit managers to make decisions increases managers' motivation and retention and improves job performance and satisfaction.
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bernie2981 Author
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#2
7 years ago
Wow! Thank you
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