Which of the following determines the degree of decentralization a firm might use?
A)The degree to which lower level management is empowered to make decisions.
B)The chain of command used to follow the flow of authority from top of the hierarchy to the lowest levels.
C)The geographical area served by the firm's operations.
D)The degree of product standardization desired by the marketplace.

Question

Quizplus · Accepted Answer

The degree of decentralization is determined by the extent to which lower-level management is empowered to make decisions. When there is a high degree of empowerment, the organization is decentralized, and when there is low empowerment, the organization is centralized. The other options may impact the structure of the organization but are not the primary determinants of decentralization.

Which of the Following Determines the Degree of Decentralization a Firm