Which of the following determines the degree of decentralization of a firm?
A) The degree to which lower-level management is empowered to make decisions.
B) The chain of command used to follow the flow of authority from top of the hierarchy to the lowest levels.
C) The geographical area served by the firm's operations.
D) The degree of product standardization desired by the marketplace.

Question

Quizplus · Accepted Answer

The degree of decentralization of a firm is determined by the degree to which lower-level management is empowered to make decisions. A highly decentralized firm gives more decision-making power to its lower-level managers, while a less decentralized firm concentrates decision-making power in the hands of top-level management. Therefore, option A is the best choice.

Which of the Following Determines the Degree of Decentralization of a Firm