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A decentralized organization empowers many managers in the organization to make business decisions. With control over their subordinates, operations can continue instead of waiting to receive direction from executive managers.
Quantitative techniques in decision-making helps managers make decisions that are best for the organization. With numbers supporting decisions, managers can get the support of top management.
Tactical decisions, which focus on more intermediate-term issues, are typically made by middle managers.
Managers coordinate and oversee the work of employees within the organization and help accomplish the organizational goals. Top Managers are responsible for making decisions about the entire organization. Middle Managers manage the work of the first-line managers. First-line managers are the ones who manage the work of the non-managerial employees.
Quantitative techniques in decision-making helps managers make decisions that are best for the organization. With numbers supporting decisions, managers can get the support of top management.
Strategic decisions, which affect the long-term direction of the entire company, are typically made by top managers.
Operational decisions focus on day-to-day activities within the company and are typically made by lower-level managers.
managerial accounting
Operational decisions focus on day-to-day activities within the company and are typically made by lower-level managers.
Lower level managers may make decisions without fully understanding the "big picture." While top level managers typically have less detailed information about local operations than the lower level managers, they usually have more information about the company as a whole and should have a better understanding of the company's strategy.In a truly decentralized organization, there may be a lack of coordination among autonomous managers. This problem can be reduced by clearly defining the company's strategy and communicating it effectively throughout the organization.Lower-level managers may have objectives that are different from the objectives of the entire organization. For example, some managers may be more interested in increasing the sizes of their departments than in increasing the profits of the company. To some degree, this problem can be overcome by designing performance evaluation system that motivate managers to make decisions that are in the best interests of the organization.In a strongly decentralized organization, it may be more difficult to effectively spread innovative ideas. Someone in one part of the organization may have a traffic idea that would benefit other parts of the organizations, but without strong central direction the idea may not be shared with, and adopted by other parts of the organization.
They choose the managers of the organization and offer the salaries and compensations, set goals. For important decisions, they vote to reach an agreement.
Unlike other types of information systems, the purpose of a DSS is specifically to help managers make decisions. A DSS supports individual managers and groups of managers at all levels of management in an organization.