Upper management of a growing company has decided its organization is too large to operate as one unit. In fact, some in upper management believe parts of the company are not as profitable as they should be. They have decided to create different segments of the company based on similar groups of products manufactured and have appointed managers of each of these segments. Which of the following would be a good reason for upper management to make this decision? L Each segment manager can be held responsible for income generated by segment assets. II. Duplication of work across the organization will decline. III. Segment managers have better information to make decisions than upper management. IV. Upper management can build future leaders by developing segment managers' decision-making skills. V. Communication across the company will be strengthened.
Upper management of a growing company has decided its organization is too large to operate as one unit. In fact, some in upper management believe parts of the company are not as profitable as they should be. They have decided to create different segments of the company based on similar groups of products manufactured and have appointed managers of each of these segments. Which of the following would be a good reason for upper management to make this decision? L Each segment manager can be held responsible for income generated by segment assets. II. Duplication of work across the organization will decline. III. Segment managers have better information to make decisions than upper management. IV. Upper management can build future leaders by developing segment managers' decision-making skills. V. Communication across the company will be strengthened.
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 8MC: What should an organization do if performance measures change? A. Make sure that the manager being...
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