Firms grant decision rights to teams of employees for all of the following reaso

Question

Firms grant decision rights to teams of employees for all of the following reasons except to: A. manage activities. B. make products. C. make basic investment decisions. D. recommend actions.

Kevin Freeman is the head of a team developing plastic knee replacements. Each member of the team brings specialized knowledge to the innovation process. Without both engineers and materials specialists, the project could not be successful. This is an example of the: A. benefits of the use of dispersed specific knowledge. B. costs of employee buy-in. C. costs of collective-action problems. D. free-rider problem.

Explanation / Answer

1. Firms globally give decision making rights to their employees for following

- Manage Activities, Make Products, Recommend Actions, However the ultimate decision to invest money is always with the firm. So Option C is correct.

Firms grant decision rights to teams of employees for all of the following reasons except to: C. make basic investment decisions.

2. Use of disperse knowledge leads to situations where these guys collectively are not as effective as they are working as individuals. The situation explained in the question is a classic example of disperse knowledge.
So option A is correct.

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