Reference no: EM13560304

One way of thinking about organizing to implement cost leadership strategies is that firms that pursue this strategy should be highly centralized, have high elvels of direct supervision, and keep employyee wages to an absolute minimum. Another apporach is to decentralize decision making authority- to ensure that individuals who know the most about reducing costs make decisions about how to reduce costs. This, in turn, would imply less direct supervision and somwhat higher levels of employee wages. Why is this?? Which of these two approaches seems more reasonable? Under what conditions would these different apporaches make more or less sense?