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Decentralization enables divisions of a large institution to

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Intern
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Joined: 27 Aug 2012
Posts: 16
Schools: Anderson '15
Followers: 0

Kudos [?]: 3 [0], given: 8

Decentralization enables divisions of a large institution to [#permalink] New post 15 Nov 2012, 04:20
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Difficulty:

  65% (medium)

Question Stats:

25% (02:55) correct 75% (01:34) wrong based on 158 sessions
Decentralization enables divisions of a large institution
to function autonomously. This always permits more
realistic planning and strongly encourages innovation,
since the people responsible for decision making are
directly involved in implementing the policies they
design. Decentralization also permits the central
administration to focus on institution-wide issues
without being overwhelmed by the details of daily
operations.

The statements above most strongly support which one
of the following?

(A) In large institutions whose divisions do not
function autonomously, planning is not
maximally realistic.
(B) Innovation is not always encouraged in large
centralized institutions.
(C) For large institutions the advantages of
decentralization outweigh its disadvantages.
(D) The central administrations of large institutions
are usually partially responsible for most of the
details of daily operations.
(E) The people directly involved in implementing
policies are always able to make innovative
and realistic policy decisions.

kindly explain if you are able to successfully eliminate the incorrect choices by POE
[Reveal] Spoiler: OA
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Joined: 19 Jul 2012
Posts: 167
Location: India
Concentration: Marketing, International Business
GMAT 1: 630 Q49 V28
GPA: 3.3
Followers: 5

Kudos [?]: 75 [0], given: 31

Re: Decentralization enables divisions of a large [#permalink] New post 15 Nov 2012, 04:45
We are looking for "must be true" answer based on the argument.

(A) In large institutions whose divisions do not function autonomously, planning is not maximally realistic: Correct. This must be true. As provided in the argument, function autonomous always permits more realistic planning which means scope of realistic planning exists.
(B) Innovation is not always encouraged in large centralized institutions: Incorrect. We cannot infer from the argument whether large centralized institutions encourage innovations or not.
(C) For large institutions the advantages of decentralization outweigh its disadvantages: Incorrect. No disadvantage is mentioned in the passage. Thus, we cannot infer any comparison.
(D) The central administrations of large institutions are usually partially responsible for most of the details of daily operations: Incorrect. We cannot infer this from the argument.
(E) The people directly involved in implementing policies are always able to make innovative and realistic policy decisions: Incorrect. This one is tricky. It is not necessary that the people will come up with both innovative and realistic policy decisions. Some can be realistic and not innovative.
Senior Manager
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Joined: 22 Nov 2010
Posts: 293
Location: India
GMAT 1: 670 Q49 V33
WE: Consulting (Telecommunications)
Followers: 5

Kudos [?]: 20 [0], given: 75

Re: Decentralization enables divisions of a large institution to [#permalink] New post 22 Feb 2013, 05:06
Decentralization enables divisions of a large institution to function autonomously. This always permits more realistic planning and strongly encourages innovation, since the people responsible for decision making are directly involved in implementing the policies they design. Decentralization also permits the central administration to focus on institution-wide issues without being overwhelmed by the details of daily
operations.

The statements above most strongly support which one
of the following?

(A) In large institutions whose divisions do not function autonomously, planning is not maximally realistic. Maximally is key word, which molds the tone of the statement as used in passage

(B) Innovation is not always encouraged in large centralized institutions. Very strong word: Not always

(C) For large institutions the advantages of decentralization outweigh its disadvantages. OFS. No mention of disadvantages
(D) The central administrations of large institutions are usually partially responsible for most of the details of daily operations. OFS. Very strong word: Most of the details
(E) The people directly involved in implementing policies are always able to make innovative and realistic policy decisions.
OFS. Very strong word:always

Therefore, A.

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Manager
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Joined: 23 May 2013
Posts: 128
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Kudos [?]: 23 [0], given: 110

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Re: Decentralization enables divisions of a large institution to [#permalink] New post 27 Feb 2014, 17:32
From the below link it appears that this is taken from Manhattan, LSAT questions. Do we get such questions in GMAT?

http://www.manhattanlsat.com/forums/q18 ... -t784.html

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Re: Decentralization enables divisions of a large institution to   [#permalink] 27 Feb 2014, 17:32
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