BUSI 1003 Chapter Notes - Chapter 14: Earnings Before Interest And Taxes, Job Satisfaction, Decision-Making
1 May 2014
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Chapter 14 - performance evaluations for decentralized operations. Centralized business all major planning and operating decisions are made by top management. Decentralized business separating a business into divisions and delegating responsibility to unit managers. Divisions are structured around common functions, products, customers, or regions. Lower level managers gain experience in decision making. Lower level decision often based on better information. Top management freed to concentrate on strategy. Decision making authority leads to job satisfaction. Lower level manager can respond quickly to customers. May be lack of coordination among autonomous managers. Lower level managers may make decisions without seeing the big picture". Lower level manager"s objectives may not be those of the organization. May be difficult to spread innovative ideas in the organization. Responsibility accounting is the process of measuring/reporting operating data by responsibility center. A responsibility center is the area for which a unit manager is responsible.
