In the context of corporate governance, what is the primary purpose of delegation?
Understand the Problem
The question is asking about the primary purpose of delegation within the framework of corporate governance. It presents multiple-choice options to clarify different aspects of delegation, focusing on how tasks and decision-making powers are distributed within an organization.
Answer
To reduce bureaucracy and allow efficient decision-making.
The primary purpose of delegation in corporate governance is to reduce bureaucracy, allowing critical decisions to be made efficiently without the unnecessary risk of involving the board in all matters.
Answer for screen readers
The primary purpose of delegation in corporate governance is to reduce bureaucracy, allowing critical decisions to be made efficiently without the unnecessary risk of involving the board in all matters.
More Information
Delegation in corporate governance allows organizations to function more efficiently by empowering managers with the expertise to make decisions, thus preventing delays caused by board involvement in every decision.
Tips
A common mistake is thinking delegation means relinquishing all control by the board. Effective delegation involves defining limits and maintaining oversight.
Sources
- Delegation of authority in the context of corporate governance - thecorporategovernanceinstitute.com
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