Which one of the following falsely characterizes a centralized organizational structure?
A) Top executives should retain authority over most strategic and operating decisions and keep a tight rein on business-unit heads, department heads, and the managers of key operating units.
B) Strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track.
C) Tight control by the manager in charge makes it easy to fix accountability when things do not go well.
D) Most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and that they lack the knowledge and judgment to make wise decisions about how best to do their work.
E) A company that draws on the combined intellectual capital of all of its people can outperform a company that relies on command-and-control.

Question

Quizplus · Accepted Answer

This statement falsely characterizes a centralized organizational structure because it highlights the importance of drawing on the combined intellectual capital of all the people in a company, which is more conducive to a decentralized organizational structure where decision-making authority is shared throughout the company. The other statements are accurate characteristics of a centralized organizational structure, such as retaining authority at the top, enforcing detailed procedures, and tight control by managers.

Which One of the Following Falsely Characterizes a Centralized Organizational