The role of responsibility centres in the overall performance of the entity

Abstract

In a big, multi-productive company, spread upon a large geographical area, with advanced hierarchies and typical of modern business - a miniature economy, the managers must decide who inside the organization is responsible for making a certain decision and how this will be evaluated and rewarded.

The central objective information and organizational planni ng is that of creating a balance between benefits and costs in making the decision, by a decentralized system.