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25 June, 14:27

The Kingtel Corporation is expanding operations into countries outside the United States. To improve local managers' responsiveness to local conditions, Kingtel's senior management has decided to delegate decision-making authority further down the chain of command. Acme is

decentralizing (T/F)

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  1. 25 June, 14:37
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    True. This is an example of decentralization.

    Explanation:

    Starting operations abroad is a major decision for a corporation. It will be very difficult if the CEO in the home country has to take all the decisions; this can diminish effiiency, effectivity and a CEO may not be knowledgeable about all local conditions in new countries. So, he has to confer decision-making powers in some key areas to local managers.
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