Which statement about the relationship between job descriptions and decision rights is correct?

Which statement about the relationship between job descriptions and decision rights is correct?

• A. Decision rights are defined by job descriptions
• B. Decision rights are defined by company policy documents
• C. Decision rights are assigned by supervisors
• D. Decision rights are determined by market conditions

Answer: (B)

Decision rights are defined by company policy documents that specify who may approve actions, at what levels, and under what conditions. Job descriptions describe roles, duties, and responsibilities, but they don’t establish formal authorization limits for the entire organization. Supervisors can guide and assign tasks, yet the binding authority to make decisions across the company comes from policy documents and the formal delegation framework. Market conditions may affect which actions are taken, but they do not set the formal rights to decide.

Decision rights are defined by company policy documents that specify who may approve actions, at what levels, and under what conditions. Job descriptions describe roles, duties, and responsibilities, but they don’t establish formal authorization limits for the entire organization. Supervisors can guide and assign tasks, yet the binding authority to make decisions across the company comes from policy documents and the formal delegation framework. Market conditions may affect which actions are taken, but they do not set the formal rights to decide.