Tyler Jones is the CEO of a medium-sized manufacturer of bedding and blankets. Tyler insists on making all decisions as to styles that are manufactured, the type of material that will be used in each, the sources from whom the company will purchase yard goods, thread, and buttons, and the shippers the company will use. Which of the following terms describes this company?
A) Elaboration stage
B) Centralization
C) Formalization
D) Standardization

Question

Quizplus · Accepted Answer

Tyler Jones's insistence on making all decisions shows that the power and authority are concentrated at the top level of the company. This is called centralization, where decision-making authority is kept at the top rather than being delegated to lower levels in the organization. A more decentralized approach would involve delegating decision-making authority to lower levels in the organization. Elaboration stage refers to the development stage in the innovation process, formalization refers to the degree to which work processes are standardized, and standardization refers to the extent to which processes are uniform and consistent. None of these terms applies to the given scenario as much as centralization.

Tyler Jones Is the CEO of a Medium-Sized Manufacturer of Bedding