Скачать или смотреть Centralized Vs. Decentralized Operations // Management Reporting // Elvy Razonales, CPA

Management must accomplish its objectives by working through people. Presidents of companies could not possibly execute all of their company’s strategies alone and therefore must rely on other people. The process of delegating the decision-making authority throughout an organization is called decentralization.

Before designing strategic performance measurement systems, top managers determine when delegation of responsibility (called decentralization) is desirable.

The strategic benefit of the centralized approach is that top management retains control over key business functions, ensuring a desired level of performance.

Additionally, with top management involvement in most decisions, the expertise of top management can be effectively coordinated.


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