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Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
What is the term for concentrating decision-making authority at the highest levels of an organization?
The Correct Answer is: B. Centralization
Centralization is the concentration of decision-making authority at the top levels of an organization. In this structure, senior leaders retain control over key policies, procedures, and strategic decisions, ensuring consistency and uniformity across the organization. While it can promote strong oversight, centralization may also slow decision-making and limit local responsiveness.
Why the other options are incorrect:
A. Delegation
Delegation involves assigning decision-making authority and responsibility to lower-level managers or employees. It is the opposite of centralization, as it distributes authority rather than concentrating it at the top.
C. Decentralization
Decentralization spreads decision-making authority throughout different levels or locations in the organization. This approach promotes flexibility and responsiveness but reduces the level of centralized control.
D. Functionalization
Functionalization refers to structuring an organization based on specialized functions such as marketing, finance, or HR. While it can influence decision-making flow, it is not specifically about where authority is concentrated.
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