Which statement about organizational structure is TRUE?
A) As a company gets larger, it tends to adopt a decentralized structure.
B) Decentralized firms tend to have many layers of management.
C) The purpose of centralization is to make a company more responsive to a changing, complex environment.
D) In a centralized organization, most decision-making authority is held by lower-level managers.

Question

Quizplus · Accepted Answer

As a company grows larger, it becomes more complex, leading to the need for more specialized roles and greater delegation of decision-making authority. Decentralization allows for this and is often adopted by larger companies.

Answer: C
 The purpose of centralization is to concentrate decision-making authority at the top of the organizational hierarchy, allowing for more consistent and efficient decision-making. This is useful in situations where the environment is stable and predictable.

Therefore, the best choices are A and C.

Which Statement About Organizational Structure Is TRUE