Company Alpha wants to give top management time to focus on critical issues through increased delegation and the reduction the amount of information top managers have to process. The company also wants to give employees a greater degree of individual freedom and control over their work. The best vertical differentiation option for Company Alpha is centralization.

Question

Quizplus · Accepted Answer

Centralization involves consolidating decision-making power at the top of the organizational hierarchy, which is not aligned with Company Alpha's objectives of reducing the amount of information top managers have to process and giving employees greater control over their work. Decentralization, on the other hand, is a better option as it involves delegating decision-making power to lower levels of the hierarchy, allowing top management to focus on critical issues while giving employees greater autonomy.

Company Alpha Wants to Give Top Management Time to Focus