122. Traditionally, lending decisions at financial institutions were made by people relatively high up in the organization....

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12–2. Traditionally, lending decisions at financial institutions were made by people relatively high up in the organization. For instance, a senior loan officer might have to approve even a small loan. Recently, some financial institutions have decentralized this decision, sometimes to people without college degrees. Discuss why it might have historically made sense to centralize the lending decision. Discuss potential factors that might have motivated the decentralization of these rights in certain organizations?

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Managerial Economics And Organizational Architecture

ISBN: 9781260571219

7th International Edition

Authors: Clifford W. Smith, Jerold Zimmerman, James Brickley

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