David does not want a management position. He is highly respected by clients, competitors, and co-workers, due to his expertise, experience, and personal qualities. When a major business decision is required, even the division manager above David in the hierarchy asks David's opinion. Even though David has no formal management authority, he has ________ authority.
A) divisional
B) unity-of-command
C) centralized
D) decentralized
E) informal

Question

Quizplus · Accepted Answer

David has informal authority, meaning that he has influence and power in the organization due to his expertise and personal qualities rather than a formal position in the hierarchy.

David Does Not Want a Management Position