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In a large multiproduct, multi-location and hierarchical entities of modern business enterprises, managers must decide who in the organization will have the authority and responsibility for making particular decisions and how such a decision maker will be evaluated and rewarded. In view of this, a certain amount of decentralization is necessary within an organization.
Required:
Problem i. Briefly explain the meaning of the term decentralization.
Problem ii. Briefly explain the FIVE (5) motivations for decentralization?
From a board governance perspective, which of the following is most important for the board to focus on to help improve performance?
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