Reference no: EM133382448
Question: In recent chapters, you have learned about many aspects of organizational structure, budgeting, and performance evaluation. None of these company characteristics operates in isolation. They all interrelate to form an organization's culture and influence employee morale. The following table has several combinations of organizational structure and budgeting preparation style:
Participative versus Top Down Budgeting is discussed in the early pages of Chapter 22, and Decentralization can be found in the early pages of Chapter 24.
| |
Organizational Structure |
Budget Creation Process |
| Environment A |
Centralized |
Top Down |
| Environment B |
Centralized |
Participative |
| Environment C |
Decentralized |
Top Down |
| Environment D |
Decentralized |
Participative |
As you are working through this assignment, think about the idea of Controllable Costs from Chapter 24 in regards to performance evaluation, and whether or managers want to be held accountable for things that are outside of their control.
Required:
First, pick two of the combinations above and write a brief paragraph for each summarizing both the potential advantages and disadvantages for a company that makes your product. Consider the impact on managers and other employees as well as the potential impact on outside parties such as customers or other organizational stakeholders.
Then indicate which of the two corporate environments you would prefer to work within, and briefly explain why you would pick one over the other.