Discussion #6

Discussion #6

Should decision management and decision control be separated? As part of your discussion, provide a real-world example (or provide a fictitious example) of a firm where the control (correctly) resides with the same individual as well as an example of a firm where the control is (correctly) separated.

Reference:

Brickley, J., Smith, C., & Zimmerman, J. (2016). Managerial economics and organizational

architecture (6th ed.). New York: McGraw Hill/Irwin.

Solution Preview

According to Brickley, Smith & Zimmerman, 2016, decision management entails the introduction and implementation of decisions within an organization. Comparatively, decision control refers to the ratification and monitoring of the implemented decisions. Notably, the two aspects serve different functions within the organization thus should be separated to avoid conflict of interest (Brickley, Smith & Zimmerman, 2016). Considerably, well-designed governance systems should separate the two functions whereby the shareholders elect the board and approve major corporate decisions such as business mergers

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