Self-dealing is the term used to describe the conduct of managers ...

[sarasara]

Self-dealing is the term used to describe the conduct of managers who take advantage of their position to act in their own interests rather than in the interests of other stakeholders.
 
  Indicate whether the statement is true or false

Question 2

Discuss the significance of decentralization.
 
  What will be an ideal response?

[katieost]

Answer to Question 1

TRUE

Answer to Question 2

As the hierarchy becomes taller and the number of managers increases, communication and coordination problems grow. Managers begin to spend more and more time monitoring and supervising their subordinates and less time planning and goal setting, and organizational effectiveness suffers. One solution to this problem is to decentralize authority because now less direct managerial supervision is needed. When authority is decentralized, the authority to make significant decisions is delegated to people throughout the hierarchy, not concentrated at the top. The delegation of authority to lower-level managers reduces the monitoring burden on top managers and reduces the need for managers to monitor managers.