Which of the following statements is true of decentralization?
A) A decentralized structure does not empower employees to handle customer complaints directly.
B) A decentralized structure forces top management to lose some control over the organization.
C) Decentralization slows responsiveness to local needs for decision making.
D) A decentralized structure only delegates recurring and structured decisions to lower levels.

Question

Quizplus · Accepted Answer

Decentralization involves delegating decision-making power to lower levels of the organization. This means that top management must give up some control over the organization. Therefore, statement B is true. On the other hand, statement A is false because a decentralized structure empowers employees to handle customer complaints directly. Statement C is also false because decentralization can improve responsiveness to local needs. Finally, statement D is false because a decentralized structure can delegate a wide range of decisions, including non-routine and unstructured decisions.

Which of the Following Statements Is True of Decentralization