1.5.2 Centralized Versus Decentralized Decision Making

Question 1

What does the issue of centralization versus decentralization concern?

Answer 1

the delegation of authority and how broadly it is distributed through the organizational hierarchy.

Question 2

What does decentralization refer to?

Answer 2

the extent to which various types of power and authority are extended to supervisors and the production employees at lower hierarchical levels of the organizational structure.

Question 3

The more decentralized an organization…

Answer 3

the greater the extent to which the rank and file employees can participate in and accept responsibility for decisions concerning their jobs and other activities of the organization

Question 4

To design an effective organizational structure, managers must what?

Answer 4

select the optimal amount of centralization and decentralization of authority. The ideal policy depends upon the situation