In a decentralized organization, upper managers need a way to evaluate the performance of unit managers. Based on factors under the unit manager’s control, organizational units are categorized as. Classify each of the following centers by placing an “X” in the appropriate column. Also feel free to add explanations.
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Cost |
Profit |
Investment |
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1. Manager is responsible for revenues and costs |
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2. Payroll department |
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3. Customer service department |
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4. Independently operated division with sole decision-making authority for all areas |
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5. Electronics department in a Best-Buy store |
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